RED ROCK RESORTS, INC.

23.2 -1.01 (-4.37%) Sell

RRR investors hurt by serious losses

13 min read

RED ROCK RESORTS, INC. delivered massive losses on Friday. It fell by -4.37% to close at 23.2. On a day when the overall market breadth was 35%, it closed higher than 75% of the market. In comparison, the benchmark SP500 index closed today at -0.0233%.

[Themes containing RRR]

RRR is currently in a bearish trend. The current bearish signal has generated a profit of +22.38% for investors in the last three months.

Trend

RRR has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 12 Jul, 2018 to 23 Oct, 2018. Over the last 2 years 7 months and 10 days, RRR underperformed the SP500 index on 49% days. Which indicates that on days RRR underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months RRR was mostly loss making and delivered on average -0.35% per day. It's best return during this period (of +8.34%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -7.39%) was on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 21 Nov, 2018 and went on till 3 Dec, 2018. This bullish trend returned +18.78% to investors.

During the last year RRR had 5 profitable months and 7 loss making months. RRR returned profits in fewer months than SP500 index. RRR was also a more risky investment than SP500 index as it's worst month in the last year, Sep 2018, returned -18.35% compared to -7.28% returned by SP500 index in Oct 2018. RRR had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -37.64%. It is interesting to note that both RRR and SP500 index significantly outperform during months when quarterly/annual results are announced.

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RRR is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in RRR's volatility from 27 Sep, 2018 to 8 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that RRR 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.

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

Based on your interest in RRR you may find it interesting to know that OEC, PRGO and HRZN have all performed similar to RRR and qualify as alternative investment candidates that must be evaluated for diversification.

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