Search for alternative investments is on for LAUR investors as it shows weakness
14 Dec, 201813 min read
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LAUR underperformed broader market today. On a longer term basis, investors in LAUREATE EDUCATION, INC. made -0.03% per day. Friday's performance of -0.07% was a significant underperformance compared to it's daily average.
Buy-and-Hold investors in LAUR experienced a maximum drawdown of -11.6% over the last three months. It lost -3.79% during this down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.
LAUR has been outperforming the SP500 index in recent time. Over the last 1 year 10 months and 13 days, LAUR underperformed the SP500 index on 51% days.
During the last three months LAUR was mostly loss making and delivered on average -0.04% per day. It's best return during this period (of +4.83%) was on Wednesday, 12 Dec, 2018. While it's worst loss in the same period (of -8.98%) was on Wednesday, 14 Nov, 2018. There was initially a bullish trend during this period which started on 17 Sep, 2018 and went on till 21 Sep, 2018. The bullish trend returned +2.8% to investors. This was followed by a bearish trend that started on 24 Sep, 2018 and ended on 27 Sep, 2018. This bearish trend lost -5.13% of investor capital.
LAUR had 6 profitable and 6 loss making months over the last year. During the last year, LAUR underperformed SP500 index on monthly return basis. LAUR significantly outperformed SP500 index in May 2018, when it returned +14.94% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. LAUR had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.
I have probably purchased fifty 'hot tips' in my career, maybe even more. When I put them all together, I know I am a net loser.
-- Charles Schwab
LAUR 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 LAUR's volatility from 21 Sep, 2018 to 8 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 LAUR has significant positive skewness in it's return distribution. This indicates that investors can expect LAUR to recover from drawdowns quickly. Which makes LAUR 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 LAUR. Therefore, SP500 must receive a lower allocation than LAUR in your portfolio. SP500 index usually has shorter drawdown period than LAUR.
On a general note (since you are interested in LAUR), AAXN is a small cap that deserves to be closely tracked for investment opportunities.
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