Waiting to invest in MATW? Avoid at the moment as it was among the worst performers
12 Dec, 201813 min read
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MATW was among the worst performers today. On a longer term basis, investors in MATTHEWS INTERNATIONAL CORP made -0.0% per day. Wednesday's performance of -0.71% was a underperformance compared to it's daily average.
MATW showed a strong bearish trend over the last 3 months. During this period MATW delivered -20.23% and saw a maximum drawdown of -23.88%. There was a short signal during this period which returned +20.23%.
MATW has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 30 Dec, 2016 to 15 Nov, 2018. Over the last 2 years 11 months and 8 days, MATW underperformed the SP500 index on 52% days.
During the last three months MATW was mostly loss making and delivered on average -0.33% per day. It's best return during this period (of +7.61%) was on Friday, 16 Nov, 2018. While it's worst loss in the same period (of -5.3%) was on Thursday, 4 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 8 Nov, 2018 and ended on 15 Nov, 2018. This bearish trend lost -9.96% of investor capital.
The last 12 months saw MATW's investors making profits in 4 months and incurring losses in 8 months. MATW was less consistent in delivering monthly returs than SP500 index. MATW was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -14.87% compared to -7.28% returned by SP500 index in Oct 2018. MATW had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Jul 2018 to Oct 2018) during which period it delivered -31.46%.
Be quick in cutting your loses but not profits
-- Abhishek Shukla
MATW 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 MATW's volatility from 20 Sep, 2018 to 16 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 MATW has significant positive skewness in it's return distribution. This indicates that investors can expect MATW to recover from drawdowns quickly. Which makes MATW a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
MATW has more chance of extreme outcomes than the SP500 index. Therefore, MATW must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than MATW.
Based on your interest in MATW you may find it interesting to know that WTR and CASY have both performed similar to MATW and can be considered by investors as alternative investment options.
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