ROKU significantly underperformed today. On a longer term basis, investors in ROKU, INC made +0.3% per day. Tuesday's performance of -3.74% was a significant underperformance compared to it's daily average.
Buy-and-Hold investors in ROKU experienced a maximum drawdown of -53.18% over the last three months. It lost -49.52% during this strong down 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 +36.58%.
ROKU has been underperforming the SP500 index in recent time, after having outperformed till 1 Oct, 2018. Over the last 1 year 2 months and 13 days, ROKU outperformed the SP500 index on 48% days. Which indicates that on days ROKU outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.
During the last three months ROKU was mostly loss making and delivered on average -0.96% per day. It's best return during this period (of +7.72%) was on Friday, 12 Oct, 2018. While it's worst loss in the same period (of -22.29%) was on Thursday, 8 Nov, 2018. There was initially a bearish trend during this period which started on 8 Oct, 2018 and went on till 11 Oct, 2018. The trend delivered -16.82% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 2 Nov, 2018. This bullish trend delivered +14.05% to investors.
ROKU had 7 profitable and 5 loss making months over the last year. During the last year, ROKU underperformed SP500 index on monthly return basis. ROKU significantly outperformed SP500 index in Aug 2018, when it returned +30.98% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ROKU and SP500 index, both had periods of 6 consecutive profitable months.
When I graduated, I promptly took a job in finance, making both my pre-med and poli-sci years essentially useless - or so I thought.
-- Yael Cohen
ROKU 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 fall in ROKU's volatility from 12 Sep, 2018 to 27 Sep, 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 ROKU has significant negative skewness in it's return distribution. This indicates that ROKU is very risky for short-term investment and can significantly underperform for long durations.
Investors trading in ROKU derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.
... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.
All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.
We want to empower investors with all the tools and analysis required by them to make a rational investment decision.If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute