FERRARI N.V. (Foreign) is looking better than most other alternatives on Tuesday. It grew by +0.03% to close at 104.96. On a day when the overall market breadth was 35%, it closed higher than 83% of the market. In comparison, the benchmark SP500 index closed today at -0.0004%.
RACE showed a strong down trend over the last 3 months. During this period RACE lost -21.35% and saw a maximum drawdown of -25.58%. There was a short signal during this period which returned +11.01%.
During the last three months RACE was mostly loss making and delivered on average -0.36% per day. It's best return during this period (of +5.86%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -8.54%) was on Wednesday, 10 Oct, 2018. There was initially a bullish trend during this period which started on 20 Sep, 2018 and went on till 26 Sep, 2018. The bullish trend returned +3.62% to investors. This was followed by a bearish trend that started on 2 Oct, 2018 and ended on 15 Oct, 2018. This bearish trend lost -17.61% of investor capital.
RACE had 6 profitable and 6 loss making months over the last year. During the last year, RACE underperformed SP500 index on monthly return basis. RACE was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -15.0% compared to -7.28% returned by SP500 index in Oct 2018. RACE had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both RACE and SP500 index significantly outperform during months when quarterly/annual results are announced.
"If all the economists were laid end to end, they'd never reach a conclusion.
RACE 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 RACE's volatility from 13 Sep, 2018 to 29 Oct, 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 RACE has significant positive skewness in it's return distribution. This indicates that investors can expect RACE to recover from drawdowns quickly. Which makes RACE a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Investors trading in RACE derivatives at this moment can consider 'Bull Call Spread' options strategy to receive better risk-adjusted returns.
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