KRAFT HEINZ CO significantly underperformed on Monday. It lost -1.35% to close at 46.82. On a day when the overall market breadth was 34%, it closed higher than 10% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.
Buy-and-Hold investors in KHC experienced a maximum drawdown of -18.67% over the last three months. It lost -17.7% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +17.7% for investors.
KHC returned losses on 55% days in the last three months. During this time, it delivered on average -0.3% per day. It delivered it's worst daily return of -9.73%, during this period, on Friday, 2 Nov, 2018. There was initially a bearish trend during this period which started on 21 Sep, 2018 and went on till 27 Sep, 2018. The trend delivered -4.47% losses to investors. This was followed by a bullish trend that started on 12 Oct, 2018 and ended on 17 Oct, 2018. This bullish trend delivered +4.71% to investors.
KHC had 3 profitable and 9 loss making months over the last year. During the last year, KHC underperformed SP500 index on monthly return basis. KHC was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -14.47% compared to -7.28% returned by SP500 index in Oct 2018. KHC had a longer winning streak of losing months than SP500 index. It went down in 6 straight months (from Jul 2018 to Dec 2018) during which period it delivered -26.86%. It is interesting to note that both KHC and SP500 index significantly outperform during months when quarterly/annual results are announced.
Financial support is one thing, but I always think what becomes really sacrificial is your time.
-- Cliff Richard
KHC is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in KHC's volatility from 19 Sep, 2018 to 5 Nov, 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 KHC has significant negative skewness in it's return distribution. This indicates that KHC is very risky for short-term investment and can significantly underperform for long durations.
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