135.53 +0.32 (+0.24%) Sell

Looking to invest in ROLL? Consider it, because it showed marginal outperformance

13 min read

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.

[Themes containing ROLL]

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.

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

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

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