MAS investors take a massive hit

MASCO CORP significantly underperformed today. It lost -1.18% to close at 30.13. It's recent 5 day performance has been -0.62%, -5.69%, +2.65%, +1.31% and -2.1%.

[Themes containing MAS]

MAS is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +18.02% for investors.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

MAS has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 3 days, MAS underperformed the SP500 index on 48% days. Which indicates that on days MAS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months MAS was mostly loss making and delivered on average -0.34% per day. It's best return during this period (of +7.47%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -8.29%) was on Friday, 26 Oct, 2018. There was initially a bullish trend during this period which started on 10 Sep, 2018 and went on till 12 Sep, 2018. The bullish trend returned +2.1% to investors. This was followed by a bearish trend that started on 3 Oct, 2018 and ended on 15 Oct, 2018. This bearish trend lost -12.84% of investor capital.

MAS had 4 profitable and 8 loss making months over the last year. During the last year, MAS underperformed SP500 index on monthly return basis. MAS was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -17.33% compared to -7.28% returned by SP500 index in Oct 2018. MAS had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Feb 2018 to May 2018) during which period it delivered -14.06%. It is interesting to note that both MAS and SP500 index significantly outperform during months when quarterly/annual results are announced.

The studios don't finance anymore, they get outside funds.
-- Robert Rodriguez

MAS 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 MAS's volatility from 10 Sep, 2018 to 30 Oct, 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 MAS has significant positive skewness in it's return distribution. This indicates that investors can expect MAS to recover from drawdowns quickly. Which makes MAS 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 MAS. Therefore, SP500 must receive a lower allocation than MAS in your portfolio. SP500 index usually has shorter drawdown period than MAS.

On a general note (since you are interested in MAS), two large cap instruments that deserve special mention are PFE and MSFT. They have significantly outperformed the overall market.