LOUISIANA-PACIFIC CORP ranked among the worst performers on Tuesday. It lost -0.05% to close at 21.29. On a day when the overall market breadth was 35%, it closed higher than 18% of the market. In comparison, the benchmark SP500 index closed today at -0.0004%.
LPX showed a strong down trend over the last 3 months. During this period LPX lost -30.61% and saw a maximum drawdown of -31.72%. There were 2 short signals during this period that returned a cumulative of +25.3% to investors.
LPX has been underperforming the SP500 index in recent time, after having outperformed till 17 Apr, 2018. Over the last 2 years 11 months and 7 days, LPX underperformed the SP500 index on 49% days. Which indicates that on days LPX underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
LPX returned losses on 65% days in the last three months. During this time, it delivered on average -0.56% per day. It delivered it's best daily return of +6.48%, during this period, on Thursday, 1 Nov, 2018. There was initially a bearish trend during this period which started on 17 Sep, 2018 and went on till 28 Sep, 2018. The trend delivered -15.32% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 2 Nov, 2018. This bullish trend delivered +9.7% to investors.
LPX had 5 profitable and 7 loss making months over the last year. During the last year, LPX underperformed SP500 index on monthly return basis. LPX was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -18.1% compared to -7.28% returned by SP500 index in Oct 2018. LPX and SP500 index, both had periods of 2 consecutive losing months. It is interesting to note that both LPX and SP500 index significantly outperform during months when quarterly/annual results are announced.
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LPX is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in LPX's volatility from 27 Sep, 2018 to 6 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that LPX 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.
Based on your interest in LPX you may find it interesting to know that LULU is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.
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