31.42 +0.39 (+1.26%) Sell

Are you evaluating investing in PKOH? Consider as it is looking better than most other alternatives

13 min read

PARK OHIO HOLDINGS CORP delivered good returns on Tuesday. It grew by +1.26% to close at 31.42. It is currently trading -33% below it's 52 week high of 47.35.

[Themes containing PKOH]

PKOH showed a strong down trend over the last 3 months. During this period PKOH lost -18.5% and saw a maximum drawdown of -21.14%. There were 2 short signals during this period that returned a cumulative of +14.76% to investors.


PKOH has been underperforming the SP500 index in recent time, after having outperformed till 29 Mar, 2016. Over the last 2 years 11 months and 14 days, PKOH underperformed the SP500 index on 49% days. Which indicates that on days PKOH underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months PKOH was mostly loss making and delivered on average -0.28% per day. It's best return during this period (of +14.38%) was on Tuesday, 6 Nov, 2018. While it's worst loss in the same period (of -4.76%) was on Wednesday, 10 Oct, 2018. There was initially a bearish trend during this period which started on 17 Oct, 2018 and went on till 24 Oct, 2018. The trend delivered -8.83% losses to investors. This was followed by a bullish trend that started on 13 Nov, 2018 and ended on 15 Nov, 2018. This bullish trend delivered +4.33% to investors.

PKOH had 3 profitable and 9 loss making months over the last year. During the last year, PKOH underperformed SP500 index on monthly return basis. PKOH was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -13.65% compared to -7.75% returned by SP500 index in Dec 2018. PKOH had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Jan 2018 to Apr 2018) during which period it delivered -17.0%.

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-- Joe Biden

PKOH 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 surge in PKOH's volatility from 20 Sep, 2018 to 8 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 PKOH has significant positive skewness in it's return distribution. This indicates that investors can expect PKOH to recover from drawdowns quickly. Which makes PKOH 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 PKOH. Therefore, SP500 must receive a lower allocation than PKOH in your portfolio. PKOH usually has shorter drawdown period than the SP500 index.

On a general note (since you are interested in PKOH), three instruments that deserve special mention are NIHD, TNDM and I. They have all outperformed the market and must be closely watched for investment opportunities.

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