REX AMERICAN RESOURCES CORP ranked among the worst performers on Monday. It fell by -4.21% to close at 64.12. On a day when the overall market breadth was 34%, it closed higher than 8% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.
REX showed a strong bearish trend over the last 3 months. During this period REX fell by -15.61% and saw a maximum drawdown of -18.33%. There was a short signal during this period which returned +13.07%.
REX has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 11 May, 2017 to 28 Nov, 2018. Over the last 2 years 11 months and 10 days, REX underperformed the SP500 index on 45% days. Which indicates that on days REX underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
REX returned losses on 58% days in the last three months. During this time, it delivered on average -0.25% per day. It delivered it's worst daily return of -5.18%, during this period, on Wednesday, 10 Oct, 2018. The longest stort-term trends during this period were 4 profitable and losing days. The bullish trend (which returned +5.37%) started on 10 Dec, 2018 and went on till 13 Dec, 2018 while the bearish trend (which returned -4.26%) started on 12 Nov, 2018 and went on till 15 Nov, 2018.
During the last year REX had 4 profitable months and 8 loss making months. REX returned profits in fewer months than SP500 index. REX was also a more risky investment than SP500 index as it's worst month in the last year, Mar 2018, returned -9.81% compared to -7.28% returned by SP500 index in Oct 2018. REX had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -17.28%. It is interesting to note that both REX and SP500 index significantly outperform during months when quarterly/annual results are announced.
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REX is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in REX's volatility from 25 Sep, 2018 to 10 Dec, 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 REX 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.
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