TEEKAY TANKERS LTD. (FOREIGN)

1.05 -0.01 (-0.94%) Buy

TNK investors herd to book profits while the going is good

13 min read

TNK significantly underperformed today. On a longer term basis, investors in TEEKAY TANKERS LTD. (Foreign) made -0.02% per day. Tuesday's performance of -0.94% was a underperformance compared to it's daily average.

[Themes containing TNK]

Buy-and-Hold investors in TNK experienced a maximum drawdown of -17.07% over the last three months. It surged by +5.0% during this bullish trending period. There were no short signals during this period, while the long signal generated profits of +5.0% for investors.

Trend

TNK has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 4 Jan, 2016 to 20 Sep, 2018. Over the last 2 years 11 months and 7 days, TNK underperformed the SP500 index on 56% days.

TNK returned losses on 52% days in the last three months. During this time, it delivered on average +0.14% per day. It delivered it's worst daily return of -10.53%, during this period, on Wednesday, 10 Oct, 2018. The longest stort-term trend during this period was 9 profitable days, which started on 27 Sep, 2018 and went on till 9 Oct, 2018. This bullish trend returned +17.4% to investors.

The last 12 months saw TNK's investors making profits in 6 months and incurring losses in 6 months. TNK was less consistent in delivering monthly returs than SP500 index. TNK was also a more risky investment than SP500 index as it's worst month in the last year, Jul 2018, returned -18.19% compared to -7.28% returned by SP500 index in Oct 2018. TNK had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year.

Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give.
-- William A. Ward

TNK 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 TNK's volatility from 13 Sep, 2018 to 10 Oct, 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 TNK 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.

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

On a general note (since you are interested in TNK), AMD is a mid cap that deserves to be closely tracked for investment opportunities.

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