TREX CO INC

62.71 +0.08 (+0.13%) Sell

Joy for TREX investors as it ranks better than it's peers but, has not managed to breakout

13 min read

TREX CO INC outperformed the broader market on Friday. It increased by +0.13% to close at 62.71. On a day when the overall market breadth was 35%, it closed higher than 4% of the market. In comparison, the benchmark SP500 index closed today at -0.0233%.

[Themes containing TREX]

TREX is currently in a bearish trend. The current bearish signal has generated a profit of +18.54% for investors in the last three months.

Trend

TREX has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 19 Jan, 2016 to 10 Sep, 2018. Over the last 2 years 11 months and 3 days, TREX outperformed the SP500 index on 54% days.

During the last three months TREX was mostly loss making and delivered on average -0.53% per day. It's best return during this period (of +6.3%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -5.89%) was on Thursday, 18 Oct, 2018. The longest stort-term trend during this period was 12 losing days, which started on 17 Sep, 2018 and ended on 2 Oct, 2018. This bearish trend lost -17.33% of investor capital.

During the last year TREX had 7 profitable months and 5 loss making months. TREX returned profits in fewer months than SP500 index. TREX significantly outperformed SP500 index in Jul 2018, when it returned +20.25% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. TREX had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

I'm involved in the stock market, which is fun and, sometimes, very painful.
-- Regis Philbin

TREX 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 TREX's volatility from 27 Sep, 2018 to 30 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that TREX 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 TREX. Therefore, SP500 must receive a lower allocation than TREX in your portfolio. SP500 index usually has shorter drawdown period than TREX.

Based on your interest in TREX you may find it interesting to know that OPNT and NVCN are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).

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