Waiting to invest in SNA? Consider it, because it managed to outperform the broader market
18 Dec, 201813 min read
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SNA outperformed today. On a longer term basis, investors in SNAP-ON INC made -0.03% per day. Tuesday's performance of +0.69% was a outperformance compared to it's daily average.
SNA showed a strong bearish trend over the last 3 months. During this period SNA delivered -21.63% and saw a maximum drawdown of -22.73%. There were 3 short signals during this period that returned a cumulative of +10.9% to investors.
SNA has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 13 Jan, 2016 to 18 Apr, 2018. Over the last 2 years 11 months and 14 days, SNA underperformed the SP500 index on 47% days. Which indicates that on days SNA underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
SNA returned losses on 56% days in the last three months. During this time, it delivered on average -0.37% per day. It delivered it's worst daily return of -9.61%, during this period, on Thursday, 18 Oct, 2018. The longest stort-term trend during this period was 7 losing days, which started on 3 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -9.91% of investor capital.
The last 12 months saw SNA's investors making profits in 6 months and incurring losses in 6 months. SNA was less consistent in delivering monthly returs than SP500 index. SNA was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -16.3% compared to -7.75% returned by SP500 index in Dec 2018. SNA had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year.
"Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it.
SNA 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 SNA's volatility from 19 Sep, 2018 to 11 Dec, 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 SNA 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 SNA. Therefore, SP500 must receive a lower allocation than SNA in your portfolio. SP500 index usually has shorter drawdown period than SNA.
Based on your interest in SNA you may find it interesting to know that VLY has delivered similar performance as SNA and can be considered as an alternative investment candidate (to SNA).
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