TRITON INTERNATIONAL LTD

31.76 +0.24 (+0.76%) Sell

TRTN does a dead cat bounce, it's still too early to buy into it

13 min read

TRITON INTERNATIONAL LTD outperformed on Thursday. It surged by +0.76% to close at 31.76. On a day when the overall market breadth was 35%, it closed higher than 73% of the market. In comparison, the benchmark SP500 index closed today at -0.0002%.

[Themes containing TRTN]

TRTN is currently in a bearish trend. Over the last three months 3 bearish signals have generated a profit of +14.02% for investors.

Trend

TRTN has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 19 Jan, 2016 to 9 Nov, 2017. Over the last 2 years 11 months and 9 days, TRTN outperformed the SP500 index on 52% days.

TRTN returned losses on 55% days in the last three months. During this time, it delivered on average -0.23% per day. It delivered it's worst daily return of -10.92%, during this period, on Friday, 28 Sep, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 30 Oct, 2018 and went on till 8 Nov, 2018. This bullish trend returned +20.79% to investors.

The last 12 months saw TRTN's investors making profits in 6 months and incurring losses in 6 months. TRTN was less consistent in delivering monthly returs than SP500 index. TRTN was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -26.11% compared to -7.28% returned by SP500 index in Oct 2018. TRTN had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both TRTN and SP500 index significantly outperform during months when quarterly/annual results are announced.

The stock market clearly values companies that can deliver disruptive innovation.
-- Steve Blank

TRTN 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 TRTN's volatility from 25 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 TRTN 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 TRTN. Therefore, SP500 must receive a lower allocation than TRTN in your portfolio. SP500 index usually has shorter drawdown period than TRTN.

On a general note (since you are interested in TRTN), if you are evaluating TRTN as an investment candidate, then you should read about CREE which has delivered similar performance and can help diversify your portfolio.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Following
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{detail.name}} {{detail.trend}} 
 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter