REALPAGE INC managed to marginally outperform the broader market on Wednesday. It gained +0.08% to close at 51.53. It is currently trading -21% below it's 52 week high of 65.9.
RP showed a strong down trend over the last 3 months. During this period RP returned -17.55% and saw a maximum drawdown of -30.83%. There was a short signal during this period which returned +11.37%.
RP was profitable on 50% days in the last three months. During this time, it delivered on average -0.27% per day. It delivered it's worst daily return of -6.44%, during this period, on Monday, 19 Nov, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 11 Oct, 2018. The trend delivered -11.2% losses to investors. This was followed by a bullish trend that started on 20 Nov, 2018 and ended on 26 Nov, 2018. This bullish trend delivered +6.88% to investors.
On monthly basis, RP delivered profits and losses in equal number of months. RP delivered profits less regularly than SP500 index. RP was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -14.16% compared to -7.28% returned by SP500 index in Oct 2018. RP had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered -16.94%. It is interesting to note that both RP and SP500 index significantly outperform during months when quarterly/annual results are announced.
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RP is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in RP's volatility from 13 Sep, 2018 to 12 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that RP has significant positive skewness in it's return distribution. This indicates that investors can expect RP to recover from drawdowns quickly. Which makes RP a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
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