9.75 -0.15 (-1.52%) Sell

Stop-loss on the minds of TGH investors as it delivered massive losses

13 min read

TGH significantly underperformed today. On a longer term basis, investors in TEXTAINER GROUP HOLDINGS LTD (Foreign) made -0.03% per day. Friday's performance of -1.52% was a significant underperformance compared to it's daily average.

Buy-and-Hold investors in TGH experienced a maximum drawdown of -29.6% over the last three months. It lost -29.6% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +29.6% for investors.


TGH has been underperforming the SP500 index in recent time, after having outperformed till 25 Jan, 2018. Over the last 2 years 11 months and 10 days, TGH underperformed the SP500 index on 50% days. Which indicates that on days TGH underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

TGH returned losses on 67% days in the last three months. During this time, it delivered on average -0.52% per day. It delivered it's best daily return of +8.51%, during this period, on Wednesday, 31 Oct, 2018. There was initially a bullish trend during this period which started on 30 Oct, 2018 and went on till 1 Nov, 2018. The bullish trend returned +12.66% to investors. This was followed by a bearish trend that started on 7 Nov, 2018 and ended on 13 Nov, 2018. This bearish trend lost -4.49% of investor capital.

TGH had 4 profitable and 8 loss making months over the last year. During the last year, TGH underperformed SP500 index on monthly return basis. TGH was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -33.47% compared to -7.28% returned by SP500 index in Oct 2018. TGH had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Aug 2018 to Dec 2018) during which period it delivered -44.37%. It is interesting to note that both TGH and SP500 index significantly outperform during months when quarterly/annual results are announced.

"I finally know what distinguishes man from the other beasts: financial worries.

TGH is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in TGH's volatility from 18 Sep, 2018 to 2 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 TGH has positive skewness in it's return distribution. This indicates that investors can expect TGH to make attempts to recover from drawdowns quickly. Which makes TGH a good candidate for momentum based trading on short-term bullish trends or counter-trends.

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

On a general note (since you are interested in TGH), APRN has performed really well and deserves to be closely tracked for investment opportunities.

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