118.38 +2.69 (+2.27%) Sell

Looking to invest in MHK? Consider it, because it ranked better than it's peers

13 min read

MOHAWK INDUSTRIES INC ranked among the best performers on Tuesday. It delivered +2.27% to close at 118.38. On a day when the overall market breadth was 34%, it closed higher than 71% of the market. In comparison, the benchmark SP500 index closed today at +0.01%.

[Themes containing MHK]

MHK showed a strong bearish trend over the last 3 months. During this period MHK fell by -36.81% and saw a maximum drawdown of -38.59%. There was a short signal during this period which returned +36.81%.


MHK has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 1 Dec, 2017 to 7 Nov, 2018. Over the last 2 years 11 months and 14 days, MHK underperformed the SP500 index on 47% days. Which indicates that on days MHK underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months MHK was mostly loss making and delivered on average -0.66% per day. It's best return during this period (of +6.59%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -23.86%) was on Friday, 26 Oct, 2018. The longest stort-term trend during this period was 7 losing days, which started on 24 Sep, 2018 and ended on 2 Oct, 2018. This bearish trend lost -9.22% of investor capital.

During the last year MHK had 4 profitable months and 8 loss making months. MHK returned profits in fewer months than SP500 index. MHK was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -28.19% compared to -7.75% returned by SP500 index in Dec 2018. MHK 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 -28.41%.

There is nothing wrong with changing a plan when the situation has changed.
-- Seneca

MHK 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 MHK's volatility from 27 Sep, 2018 to 1 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that MHK has significant positive skewness in it's return distribution. This indicates that investors can expect MHK to recover from drawdowns quickly. Which makes MHK 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 MHK. Therefore, SP500 must receive a lower allocation than MHK in your portfolio. MHK usually has shorter drawdown period than the SP500 index.

Based on your interest in MHK you may find it interesting to know that EW and SQ are both mid caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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