IRTC investors hurt by serious losses
17 Dec, 201813 min read
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IRTC is a falling knife that can bleed you if you catch it today. On a longer term basis, investors in IRHYTHM TECHNOLOGIES, INC. made -0.2% per day. Monday's performance of -8.09% was a underperformance compared to it's daily average.
Buy-and-Hold investors in IRTC experienced a maximum drawdown of -30.86% over the last three months. It fell by -28.47% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +20.06%.
IRTC has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 8 Nov, 2016 to 14 Sep, 2018. Over the last 2 years and 2 months, IRTC outperformed the SP500 index on 51% days.
During the last three months IRTC was mostly loss making and delivered on average -0.47% per day. It's best return during this period (of +7.52%) was on Thursday, 15 Nov, 2018. While it's worst loss in the same period (of -11.28%) was on Monday, 19 Nov, 2018. The longest stort-term trend during this period was 10 losing days, which started on 27 Sep, 2018 and ended on 10 Oct, 2018. This bearish trend lost -15.8% of investor capital.
During the last year IRTC had 7 profitable months and 5 loss making months. IRTC returned profits in fewer months than SP500 index. IRTC significantly outperformed SP500 index in May 2018, when it returned +30.75% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. IRTC had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.
"The man who begins to speculate in stocks with the intention of making a fortune usually goes broke, whereas the man who trades with a view of getting good interest on his money sometimes gets rich.
IRTC is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in IRTC's volatility from 20 Sep, 2018 to 31 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that IRTC has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.
IRTC has more chance of extreme outcomes than the SP500 index. Therefore, IRTC must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than IRTC.
On a general note (since you are interested in IRTC), three instruments that deserve special mention are NIHD, DFBG and HEAR. They have all outperformed the market and must be closely watched for investment opportunities.
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