Joy for KOPN investors as it shows marginal outperformance
13 Dec, 201813 min read
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KOPN outperformed the broader market today. On a longer term basis, investors in KOPIN CORP made +0.08% per day. Thursday's performance of +2.88% was a outperformance compared to it's daily average.
Buy-and-Hold investors in KOPN experienced a maximum drawdown of -42.56% over the last three months. It delivered -32.86% during this strong bearish trending period. There were no long signals during this period, where the short signal generated good profits of +32.86% for investors.
KOPN has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 19 Sep, 2017 to 12 Dec, 2018. Over the last 2 years 11 months and 9 days, KOPN underperformed the SP500 index on 51% days.
During the last three months KOPN was mostly loss making and delivered on average -0.55% per day. It's best return during this period (of +8.78%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -16.31%) was on Thursday, 8 Nov, 2018. The longest stort-term trend during this period was 5 losing days, which started on 1 Oct, 2018 and ended on 5 Oct, 2018. This bearish trend lost -10.25% of investor capital.
The last 12 months saw KOPN's investors making profits in 6 months and incurring losses in 6 months. KOPN was less consistent in delivering monthly returs than SP500 index. KOPN was also a more risky investment than SP500 index as it's worst month in the last year, Nov 2018, returned -25.56% compared to -7.28% returned by SP500 index in Oct 2018. KOPN had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both KOPN and SP500 index significantly outperform during months when quarterly/annual results are announced.
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KOPN 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 fall in KOPN's volatility from 17 Sep, 2018 to 7 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 KOPN 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.
SP500 index has more chance of extreme outcomes than KOPN. Therefore, SP500 must receive a lower allocation than KOPN in your portfolio. SP500 index usually has shorter drawdown period than KOPN.
On a general note (since you are interested in KOPN), UNH is a large cap that deserves to be closely tracked for investment opportunities.
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