14.3 -0.24 (-1.65%) Sell

Doubt in the minds of KN investors as it ranked among the worst performers

13 min read

KNOWLES CORP was among the worst performers today. It fell by -1.65% to close at 14.3. During the last week it fell by -6.17% and saw a maximum drawdown of -7.26% before bouncing back.

[Themes containing KN]

Buy-and-Hold investors in KN experienced a maximum drawdown of -17.45% over the last three months. It fell by -11.89% 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.


KN has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 15 Feb, 2017 to 26 Apr, 2018. Over the last 2 years 11 months and 3 days, KN underperformed the SP500 index on 48% days. Which indicates that on days KN underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months KN was mostly loss making and delivered on average -0.15% per day. It's best return during this period (of +14.5%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -10.16%) was on Monday, 12 Nov, 2018. The longest stort-term trend during this period was 5 losing days, which started on 4 Oct, 2018 and ended on 10 Oct, 2018. This bearish trend lost -13.27% of investor capital.

During the last year KN had 7 profitable months and 5 loss making months. KN returned profits in fewer months than SP500 index. KN significantly outperformed SP500 index in May 2018, when it returned +13.28% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. KN had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year. It is interesting to note that both KN and SP500 index significantly outperform during months when quarterly/annual results are announced.

Empty pockets never held anyone back. Only empty heads and empty hearts can do that.
-- Norman Vincent Peale

KN 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 KN's volatility from 25 Sep, 2018 to 12 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that KN has significant positive skewness in it's return distribution. This indicates that investors can expect KN to recover from drawdowns quickly. Which makes KN a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

SP500 index has more chance of extreme outcomes than KN. Therefore, SP500 must receive a lower allocation than KN in your portfolio. SP500 index usually has shorter drawdown period than KN.

Based on your interest in KN you may find it interesting to know that ABMD, LULU and SQ are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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