LGI HOMES, INC. is a falling knife that can bleed you if you catch it today. It delivered -1.44% to close at 41.75. It's recent 5 day performance has been +0.62%, -1.89%, -3.38%, +0.66% and +7.64%.
LGIH showed a strong bearish trend over the last 3 months. During this period LGIH delivered -15.49% and saw a maximum drawdown of -25.22%. There was a short signal during this period which returned +10.83%.
LGIH has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 3 Feb, 2016 to 3 Jan, 2018. Over the last 2 years 11 months and 9 days, LGIH outperformed the SP500 index on 53% days.
LGIH returned losses on 54% days in the last three months. During this time, it delivered on average -0.21% per day. It delivered it's worst daily return of -12.88%, during this period, on Tuesday, 6 Nov, 2018. The longest stort-term trend during this period was 8 losing days, which started on 25 Sep, 2018 and ended on 4 Oct, 2018. This bearish trend lost -20.83% of investor capital.
The last 12 months saw LGIH's investors making profits in 4 months and incurring losses in 8 months. LGIH was less consistent in delivering monthly returs than SP500 index. LGIH significantly outperformed SP500 index in Mar 2018, when it returned +24.7% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. LGIH had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from May 2018 to Jul 2018) during which period it delivered -27.94%.
You must gain control over your money or the lack of it will forever control you.
-- Dave Ramsey
LGIH 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 LGIH's volatility from 25 Sep, 2018 to 6 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 LGIH 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.
On a general note (since you are interested in LGIH), TWTR is a mid cap that deserves to be closely tracked for investment opportunities.
... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.
All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.
We want to empower investors with all the tools and analysis required by them to make a rational investment decision.If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute