RBC BEARINGS INC outperformed the broader market on Friday. It increased by +0.24% to close at 135.53. It is currently trading -19% below it's 52 week high of 168.34.
ROLL showed a strong bearish trend over the last 3 months. During this period ROLL fell by -10.44% and saw a maximum drawdown of -20.29%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in ROLL till volatility reduces and a clear trend emerges.
ROLL has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 2 Feb, 2016 to 2 Nov, 2018. Over the last 2 years 11 months and 10 days, ROLL outperformed the SP500 index on 52% days.
During the last three months ROLL was mostly loss making and delivered on average -0.14% per day. It's best return during this period (of +11.75%) was on Friday, 2 Nov, 2018. While it's worst loss in the same period (of -8.03%) was on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 6 losing days, which started on 5 Oct, 2018 and ended on 12 Oct, 2018. This bearish trend lost -11.88% of investor capital.
During the last year ROLL had 7 profitable months and 5 loss making months. ROLL returned profits in fewer months than SP500 index. ROLL significantly outperformed SP500 index in Jul 2018, when it returned +13.14% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ROLL had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year.
Try not to become a man of success. Rather become a man of value.
-- Albert Einstein
ROLL 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 ROLL's volatility from 9 Oct, 2018 to 6 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 ROLL 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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