RAYTHEON CO

164.84 -1.09 (-0.66%) Sell

Don't even consider investing in RTN now, it is a high risk investment

13 min read

RTN was among the worst performers today. On a longer term basis, investors in RAYTHEON CO made -0.07% per day. Tuesday's performance of -0.66% was a underperformance compared to it's daily average.

[Themes containing RTN]

RTN showed a strong bearish trend over the last 3 months. During this period RTN delivered -19.66% and saw a maximum drawdown of -20.83%. There was a short signal during this period which returned +9.48%.

Trend

RTN has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 1 Apr, 2016 to 23 Apr, 2018. Over the last 2 years 11 months and 14 days, RTN outperformed the SP500 index on 53% days.

During the last three months RTN delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +3.69%) was on Monday, 10 Dec, 2018. While it's worst loss in the same period (of -4.84%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 30 Oct, 2018 and went on till 7 Nov, 2018. This bullish trend returned +10.8% to investors.

The last 12 months saw RTN's investors making profits in 7 months and incurring losses in 5 months. RTN was less consistent in delivering monthly returs than SP500 index. RTN was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -15.65% compared to -7.75% returned by SP500 index in Dec 2018. RTN had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

I'm involved in the stock market, which is fun and, sometimes, very painful.
-- Regis Philbin

RTN 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 RTN's volatility from 9 Oct, 2018 to 30 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that RTN 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 RTN. Therefore, SP500 must receive a lower allocation than RTN in your portfolio. SP500 index usually has shorter drawdown period than RTN.

Based on your interest in RTN you may find it interesting to know that V is a large cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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