RETAIL OPPORTUNITY INVESTMENTS CORP

17.68 +0.11 (+0.63%) Sell

ROIC investors considering profit booking at current levels

13 min read

RETAIL OPPORTUNITY INVESTMENTS CORP outperformed on Friday. It surged by +0.63% to close at 17.68. On a day when the overall market breadth was 35%, it closed higher than 16% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing ROIC]

Buy-and-Hold investors in ROIC experienced a maximum drawdown of -11.01% over the last three months. It fell by -7.34% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +1.51%.

Trend

ROIC has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 1 Aug, 2016 to 3 Oct, 2018. Over the last 2 years 11 months and 10 days, ROIC underperformed the SP500 index on 48% days. Which indicates that on days ROIC underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

ROIC returned losses on 58% days in the last three months. During this time, it delivered on average -0.11% per day. It delivered it's worst daily return of -4.82%, during this period, on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 4 losing days, which started on 1 Oct, 2018 and ended on 4 Oct, 2018. This bearish trend lost -3.41% of investor capital.

During the last year ROIC had 5 profitable months and 7 loss making months. ROIC returned profits in fewer months than SP500 index. ROIC was also a more risky investment than SP500 index as it's worst month in the last year, Jan 2018, returned -8.29% compared to -7.28% returned by SP500 index in Oct 2018. ROIC had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year.

You must gain control over your money or the lack of it will forever control you.
-- Dave Ramsey

ROIC 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 fall in ROIC's volatility from 25 Oct, 2018 to 29 Nov, 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 ROIC has significant positive skewness in it's return distribution. This indicates that investors can expect ROIC to recover from drawdowns quickly. Which makes ROIC a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in ROIC you may find it interesting to know that PTC, ZBRA and KEYS are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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