Waiting to invest in RMD? Consider at the moment as it ranked among the best performers
11 Dec, 201813 min read
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RMD ranked among the best performers today. On a longer term basis, investors in RESMED INC made +0.08% per day. Tuesday's performance of +0.92% was a outperformance compared to it's daily average.
RMD showed a bullish trend over the last 3 months. During this period RMD delivered +2.05% and saw a maximum drawdown of -15.14%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in RMD till volatility reduces and a clear trend emerges.
RMD has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 6 Jan, 2016 to 11 Dec, 2018. One must note that RMD is currently at it's peak outperformance to the SP500 index which makes it a good investment candidate. Over the last 2 years 11 months and 7 days, RMD outperformed the SP500 index on 56% days.
During the last three months RMD delivered losses on 51% days. However, it still managed to end this period in a profit. It's best return during this period (of +5.69%) was on Friday, 26 Oct, 2018. While it's worst loss in the same period (of -2.99%) was on Monday, 12 Nov, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 21 Nov, 2018 and went on till 3 Dec, 2018. This bullish trend returned +10.75% to investors.
The last 12 months saw RMD's investors making profits in 9 months and incurring losses in 3 months. During the last year, RMD delivered profits in more months than SP500 index. RMD significantly outperformed SP500 index in Jan 2018, when it returned +17.84% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. RMD had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year.
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RMD is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in RMD's volatility from 12 Sep, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that RMD has significant positive skewness in it's return distribution. This indicates that investors can expect RMD to recover from drawdowns quickly. Which makes RMD 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 RMD. Therefore, SP500 must receive a lower allocation than RMD in your portfolio. SP500 index usually has shorter drawdown period than RMD.
On a general note (since you are interested in RMD), three mid cap instruments that deserve special mention are ABMD, SQ and AMD. They have all outperformed the market and must be closely watched for investment opportunities.
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