The party never started for NOVT investors as it was among the worst performers
17 Dec, 201813 min read
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NOVANTA INC has destroyed investor wealth today. It returned -2.15% to close at 60.01. During the last week it returned -1.35% and saw a maximum drawdown of -3.16% before bouncing back.
Buy-and-Hold investors in NOVT experienced a maximum drawdown of -23.51% over the last three months. It returned -18.24% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.
NOVT has been underperforming the SP500 index in recent time, after having outperformed till 8 Nov, 2018. Over the last 2 years 11 months and 10 days, NOVT outperformed the SP500 index on 55% days.
NOVT returned losses on 66% days in the last three months. During this time, it delivered on average -0.26% per day. It delivered it's best daily return of +19.59%, during this period, on Tuesday, 6 Nov, 2018. There was initially a bearish trend during this period which started on 17 Oct, 2018 and went on till 29 Oct, 2018. The trend delivered -17.71% 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 +9.63% to investors.
On monthly basis, NOVT delivered losses in more months over the last year, than profits. NOVT delivered profits less regularly than SP500 index. NOVT significantly outperformed SP500 index in Aug 2018, when it returned +22.85% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. NOVT had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both NOVT and SP500 index significantly outperform during months when quarterly/annual results are announced.
"The monarchy is foremost a business, and it's important to them that the British public continue to finance the excessive luxurious lifestyles of the now quite enormous, wasteful and useless 'royal' family. I find it very sad.
NOVT 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 NOVT's volatility from 18 Sep, 2018 to 7 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 NOVT 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 NOVT. Therefore, SP500 must receive a lower allocation than NOVT in your portfolio. SP500 index usually has shorter drawdown period than NOVT.
Based on your interest in NOVT you may find it interesting to know that MSFT is a large cap that has shown remarkable performance and deserves to be on every investors' watchlist.
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