27.11 -0.24 (-0.88%) Buy

Search for alternative investments is on for MLR investors as it underperforms broader market

13 min read

MLR significantly underperformed today. On a longer term basis, investors in MILLER INDUSTRIES INC made -0.01% per day. Friday's performance of -0.88% was a significant underperformance compared to it's daily average.

Buy-and-Hold investors in MLR experienced a maximum drawdown of -16.18% over the last three months. It returned +0.59% during this flat trending period. There were both Long and Short signals during this period, while the long signals were marginally more profitable than the short signals. The net profit from Long signals was +0.41%.


MLR has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, MLR underperformed the SP500 index on 48% days. Which indicates that on days MLR underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

MLR returned losses on 51% days in the last three months. During this time, it delivered on average +0.03% per day. It delivered it's best daily return of +9.92%, during this period, on Thursday, 8 Nov, 2018. There was initially a bullish trend during this period which started on 25 Sep, 2018 and went on till 3 Oct, 2018. The bullish trend returned +5.36% to investors. This was followed by a bearish trend that started on 4 Oct, 2018 and ended on 8 Oct, 2018. This bearish trend lost -2.24% of investor capital.

MLR had 5 profitable and 7 loss making months over the last year. During the last year, MLR underperformed SP500 index on monthly return basis. MLR significantly outperformed SP500 index in Nov 2018, when it returned +16.09% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. MLR and SP500 index, both had periods of 2 consecutive losing months.

"Financial crises are like fireworks: they illuminate the sky even as they go pop.

MLR 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 MLR's volatility from 2 Oct, 2018 to 9 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 MLR 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.

SP500 index has more chance of extreme outcomes than MLR. Therefore, SP500 must receive a lower allocation than MLR in your portfolio. SP500 index usually has shorter drawdown period than MLR.

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

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