SUMITOMO MITSUI FINANCIAL GROUP, INC. (Foreign) managed to outperform the broader market on Wednesday. It surged by +1.18% to close at 6.87. On a day when the overall market breadth was 35%, it closed higher than 66% of the market. In comparison, the benchmark SP500 index closed today at +0.54%.
Buy-and-Hold investors in SMFG experienced a maximum drawdown of -19.07% over the last three months. It delivered -11.92% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +7.79%.
SMFG has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 5 Jan, 2016 to 3 Dec, 2018. Over the last 2 years 11 months and 8 days, SMFG underperformed the SP500 index on 52% days.
SMFG returned losses on 51% days in the last three months. During this time, it delivered on average -0.19% per day. It delivered it's worst daily return of -4.35%, during this period, on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 13 Sep, 2018 and went on till 21 Sep, 2018. This bullish trend returned +5.77% to investors.
The last 12 months saw SMFG's investors making profits in 4 months and incurring losses in 8 months. SMFG was less consistent in delivering monthly returs than SP500 index. SMFG was also a less risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -6.28% compared to -7.28% returned by SP500 index in Oct 2018. SMFG had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered -16.14%. It is interesting to note that both SMFG and SP500 index significantly outperform during months when quarterly/annual results are announced.
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SMFG 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 SMFG's volatility from 14 Sep, 2018 to 11 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that SMFG 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.
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