NORBORD INC. (FOREIGN)

24.64 -0.63 (-2.57%) Sell

OSB investors dump it for better alternatives

13 min read

NORBORD INC. (Foreign) has destroyed investor wealth on Tuesday. It lost -2.57% to close at 24.64. It is currently trading -45% below it's 52 week high of 45.11.

[Themes containing OSB]

Buy-and-Hold investors in OSB experienced a maximum drawdown of -38.74% over the last three months. It lost -38.31% 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. The net profit from Short signals was +36.5%.

Trend

OSB has been underperforming the SP500 index in recent time, after having outperformed till 6 Jun, 2018. Over the last 2 years and 10 months, OSB outperformed the SP500 index on 53% days.

During the last three months OSB was mostly loss making and delivered on average -0.74% per day. It's best return during this period (of +8.81%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -7.91%) was on Wednesday, 17 Oct, 2018. There was initially a bearish trend during this period which started on 17 Sep, 2018 and went on till 25 Sep, 2018. The trend delivered -15.29% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 5 Nov, 2018. This bullish trend delivered +16.84% to investors.

OSB had 6 profitable and 6 loss making months over the last year. During the last year, OSB underperformed SP500 index on monthly return basis. OSB was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -25.45% compared to -7.28% returned by SP500 index in Oct 2018. OSB had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

"A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.

OSB is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant fall in OSB's volatility from 13 Sep, 2018 to 27 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 OSB has significant positive skewness in it's return distribution. This indicates that investors can expect OSB to recover from drawdowns quickly. Which makes OSB a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in OSB you may find it interesting to know that EPIX and IMTE are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).

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