REXNORD CORP

24.09 -0.24 (-0.99%) Sell

RXN is a falling knife, continues to bleed every investor trying to catch it

13 min read

RXN ranked among the worst performers today. On a longer term basis, investors in REXNORD CORP made -0.0% per day. Tuesday's performance of -0.99% was a underperformance compared to it's daily average.

[Themes containing RXN]

RXN showed a strong bearish trend over the last 3 months. During this period RXN delivered -23.57% and saw a maximum drawdown of -25.2%. There were 2 short signals during this period that returned a cumulative of +6.73% to investors.

Trend

RXN has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 14 Jan, 2016 to 13 Apr, 2018. Over the last 2 years 11 months and 14 days, RXN outperformed the SP500 index on 51% days.

During the last three months RXN was mostly loss making and delivered on average -0.39% per day. It's best return during this period (of +10.28%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -7.68%) was on Tuesday, 4 Dec, 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 +20.89% to investors.

The last 12 months saw RXN's investors making profits in 7 months and incurring losses in 5 months. RXN was less consistent in delivering monthly returs than SP500 index. RXN was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -14.91% compared to -7.75% returned by SP500 index in Dec 2018. RXN had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

When I graduated, I promptly took a job in finance, making both my pre-med and poli-sci years essentially useless - or so I thought.
-- Yael Cohen

RXN 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 RXN's volatility from 21 Sep, 2018 to 1 Nov, 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 RXN 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 RXN. Therefore, SP500 must receive a lower allocation than RXN in your portfolio. SP500 index usually has shorter drawdown period than RXN.

Based on your interest in RXN you may find it interesting to know that NFEC, HEAR and ECYT have all shown remarkable performance this year and deserve to be on every investor's watchlist.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Following
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{detail.name}} {{detail.trend}} 
 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter