SUN HYDRAULICS CORP

37.91 -0.09 (-0.24%) Sell

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

13 min read

SUN HYDRAULICS CORP has destroyed investor wealth today. It fell by -0.24% to close at 37.91. During the last week it increased by +2.24% and saw a maximum drawdown of -1.25% before bouncing back.

[Themes containing SNHY]

Buy-and-Hold investors in SNHY experienced a maximum drawdown of -36.02% over the last three months. It fell by -28.74% 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 +2.63%.

Trend

SNHY has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 25 Jan, 2018 to 7 Nov, 2018. Over the last 2 years 11 months and 9 days, SNHY underperformed the SP500 index on 47% days. Which indicates that on days SNHY underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months SNHY was mostly loss making and delivered on average -0.46% per day. It's best return during this period (of +5.17%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -24.15%) was on Tuesday, 6 Nov, 2018. The longest stort-term trend during this period was 6 losing days, which started on 4 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -15.43% of investor capital.

During the last year SNHY had 4 profitable months and 8 loss making months. SNHY returned profits in fewer months than SP500 index. SNHY was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -16.37% compared to -7.28% returned by SP500 index in Oct 2018. SNHY 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 -33.89%.

The only limit to our realization of tomorrow will be our doubts of today.
-- Franklin D. Roosevelt

SNHY 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 SNHY's volatility from 17 Sep, 2018 to 6 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 SNHY has significant positive skewness in it's return distribution. This indicates that investors can expect SNHY to recover from drawdowns quickly. Which makes SNHY a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in SNHY), three instruments that deserve special mention are PRQR, ECYT and I. They have all outperformed the market and must be closely watched for investment opportunities.

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