41.17 -0.24 (-0.58%) Sell

Waiting to invest in STC? Avoid at the moment as it delivered massive losses

13 min read

STEWART INFORMATION SERVICES CORP delivered massive losses on Friday. It delivered -0.58% to close at 41.17. It is currently trading -12% below it's 52 week high of 47.12.

[Themes containing STC]

STC showed a bearish trend over the last 3 months. During this period STC delivered -8.94% and saw a maximum drawdown of -10.75%. There were 3 short signals during this period that returned a cumulative of +4.58% to investors.


STC has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 17 Oct, 2016 to 20 Sep, 2017. Over the last 2 years 11 months and 10 days, STC underperformed the SP500 index on 49% days. Which indicates that on days STC underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months STC was mostly loss making and delivered on average -0.14% per day. It's best return during this period (of +1.53%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -4.46%) was on Thursday, 11 Oct, 2018. The longest stort-term trend during this period was 4 losing days, which started on 26 Sep, 2018 and ended on 1 Oct, 2018. This bearish trend lost -1.91% of investor capital.

The last 12 months saw STC's investors making profits in 7 months and incurring losses in 5 months. STC was less consistent in delivering monthly returs than SP500 index. STC was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -9.84% compared to -7.28% returned by SP500 index in Oct 2018. STC had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

"If investing is entertaining, if you're having fun, you're probably not making any money. Good investing is boring.

STC 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 STC's volatility from 17 Sep, 2018 to 25 Oct, 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 STC 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 STC. Therefore, SP500 must receive a lower allocation than STC in your portfolio. SP500 index usually has shorter drawdown period than STC.

Based on your interest in STC you may find it interesting to know that AMRH and NSPR have both shown remarkable performance and deserve to be on every investors' watchlist.

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