7.16 -0.28 (-3.89%) Sell

RYI investors looking to exit as part of sectoral rotation

13 min read

RYERSON HOLDING CORP was among the worst performers on Friday. It delivered -3.89% to close at 7.16. On a day when the overall market breadth was 35%, it closed higher than 80% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing RYI]

RYI is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +22.74% for investors.


RYI has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 10 Feb, 2016 to 18 Jul, 2016. Over the last 2 years 11 months and 10 days, RYI outperformed the SP500 index on 51% days.

RYI returned losses on 58% days in the last three months. During this time, it delivered on average -0.58% per day. It delivered it's best daily return of +11.64%, during this period, on Monday, 5 Nov, 2018. The longest stort-term trend during this period was 5 losing days, which started on 10 Oct, 2018 and ended on 16 Oct, 2018. This bearish trend lost -14.35% of investor capital.

The last 12 months saw RYI's investors making profits in 4 months and incurring losses in 8 months. RYI was less consistent in delivering monthly returs than SP500 index. RYI significantly outperformed SP500 index in Apr 2018, when it returned +24.07% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. RYI had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Jun 2018 to Aug 2018) during which period it delivered -23.43%. It is interesting to note that both RYI and SP500 index significantly outperform during months when quarterly/annual results are announced.

The difference between playing the stock market and the horses is that one of the horses must win.
-- Joey Adams

RYI 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 RYI's volatility from 18 Sep, 2018 to 5 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 RYI 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 RYI. Therefore, SP500 must receive a lower allocation than RYI in your portfolio. SP500 index usually has shorter drawdown period than RYI.

Based on your interest in RYI you may find it interesting to know that VIPS is highly volatile and investors investing in it must take extreme caution. Consider either reducing your exposure to VIPS or sufficiently diversifying your portfolio.

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
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