14.39 -0.03 (-0.21%) Sell

SHO continues its fall as more investors loose confidence

13 min read

SHO showed weakness today. On a longer term basis, investors in SUNSTONE HOTEL INVESTORS, INC. made -0.01% per day. Friday's performance of -0.21% was a underperformance compared to it's daily average.

[Themes containing SHO]

Buy-and-Hold investors in SHO experienced a maximum drawdown of -16.43% over the last three months. It delivered -13.73% during this strong bearish trending period. There were no long signals during this period, where the short signal generated good profits of +13.73% for investors.


SHO has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 19 Dec, 2016 to 25 Oct, 2018. Over the last 2 years 11 months and 10 days, SHO underperformed the SP500 index on 47% days. Which indicates that on days SHO underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

SHO returned losses on 61% days in the last three months. During this time, it delivered on average -0.22% per day. It delivered it's best daily return of +4.24%, during this period, on Wednesday, 7 Nov, 2018. The longest stort-term trend during this period was 5 losing days, which started on 9 Oct, 2018 and ended on 15 Oct, 2018. This bearish trend lost -7.22% of investor capital.

The last 12 months saw SHO's investors making profits in 6 months and incurring losses in 6 months. SHO was less consistent in delivering monthly returs than SP500 index. SHO was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -14.36% compared to -7.28% returned by SP500 index in Oct 2018. SHO had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

Let him who would enjoy a good future waste none of his present.
-- Roger Babson

SHO 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 SHO's volatility from 18 Sep, 2018 to 7 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 SHO has significant positive skewness in it's return distribution. This indicates that investors can expect SHO to recover from drawdowns quickly. Which makes SHO a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in SHO you may find it interesting to know that APRN, AYTU and NSPR have all shown remarkable performance and qualify to be on every investor's watchlist.

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