Don't give up on RACE now, it gave a fairly good return

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%.

[Themes containing RACE]

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%.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

RACE has been underperforming the SP500 index in recent time, after having outperformed till 14 Jun, 2018. Over the last 2 years 11 months and 7 days, RACE outperformed the SP500 index on 51% days.

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.

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

Based on your interest in RACE you may find it interesting to know that HQY and EHC are both small caps that have shown remarkable performance and deserve to be on every investors' watchlist.