KB HOME ranked among the worst performers on Monday. It fell by -1.53% to close at 19.35. On a day when the overall market breadth was 34%, it closed higher than 18% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.
KBH showed a strong bearish trend over the last 3 months. During this period KBH fell by -25.0% and saw a maximum drawdown of -31.74%. There was a short signal during this period which returned +25.0%.
KBH has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 7 Jan, 2016 to 11 Jan, 2018. Over the last 2 years 11 months and 10 days, KBH outperformed the SP500 index on 52% days.
KBH returned losses on 58% days in the last three months. During this time, it delivered on average -0.4% per day. It delivered it's worst daily return of -15.34%, during this period, on Thursday, 15 Nov, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 16 Nov, 2018 and went on till 28 Nov, 2018. This bullish trend returned +19.39% to investors.
During the last year KBH had 4 profitable months and 8 loss making months. KBH returned profits in fewer months than SP500 index. KBH was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -15.74% compared to -7.28% returned by SP500 index in Oct 2018. KBH and SP500 index, both had periods of 2 consecutive losing months.
Some people dream of success, while other people get up every morning and make it happen.
-- Wayne Huizenga
KBH 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 KBH's volatility from 19 Sep, 2018 to 16 Nov, 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 KBH has significant positive skewness in it's return distribution. This indicates that investors can expect KBH to recover from drawdowns quickly. Which makes KBH a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
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