KAR AUCTION SERVICES, INC. delivered massive losses on Friday. It fell by -2.39% to close at 49.45. It is currently trading -22% below it's 52 week high of 64.22.
KAR showed a strong bearish trend over the last 3 months. During this period KAR fell by -21.16% and saw a maximum drawdown of -22.26%. There were 2 short signals during this period that returned a cumulative of +16.47% to investors.
KAR has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 8 Aug, 2017 to 21 Aug, 2018. Over the last 2 years 11 months and 10 days, KAR outperformed the SP500 index on 52% days.
KAR returned losses on 64% days in the last three months. During this time, it delivered on average -0.36% per day. It delivered it's worst daily return of -5.85%, during this period, on Friday, 7 Dec, 2018. The longest stort-term trend during this period was 8 losing days, which started on 19 Sep, 2018 and ended on 28 Sep, 2018. This bearish trend lost -6.32% of investor capital.
During the last year KAR had 7 profitable months and 5 loss making months. KAR returned profits in fewer months than SP500 index. KAR was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -13.46% compared to -7.28% returned by SP500 index in Oct 2018. KAR had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year. It is interesting to note that both KAR and SP500 index significantly outperform during months when quarterly/annual results are announced.
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KAR is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in KAR's volatility from 28 Sep, 2018 to 7 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that KAR 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.
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