Are you evaluating investing in TTC? Avoid as it delivered massive losses
14 Dec, 201813 min read
Share with friends 
TORO CO delivered massive losses today. It lost -0.69% to close at 57.73. It's recent 5 day performance has been -0.65%, +1.12%, -0.31%, -0.84% and +0.65%.
TTC showed a down trend over the last 3 months. During this period TTC lost -7.47% and saw a maximum drawdown of -12.77%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in TTC till volatility reduces and a clear trend emerges.
TTC has been underperforming the SP500 index in recent time, after having outperformed till 8 Aug, 2017. Over the last 2 years 11 months and 10 days, TTC outperformed the SP500 index on 55% days.
TTC returned losses on 61% days in the last three months. During this time, it delivered on average -0.11% per day. It delivered it's best daily return of +4.08%, during this period, on Thursday, 1 Nov, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 11 Oct, 2018. The trend delivered -7.59% losses to investors. This was followed by a bullish trend that started on 1 Nov, 2018 and ended on 7 Nov, 2018. This bullish trend delivered +8.0% to investors.
TTC had 4 profitable and 8 loss making months over the last year. During the last year, TTC underperformed SP500 index on monthly return basis. TTC significantly outperformed SP500 index in Nov 2018, when it returned +10.05% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. TTC had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Feb 2018 to May 2018) during which period it delivered -9.5%.
Success is walking from failure to failure with no loss of enthusiasm.
-- Winston Churchill
TTC 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 TTC's volatility from 3 Oct, 2018 to 1 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 TTC has significant positive skewness in it's return distribution. This indicates that investors can expect TTC to recover from drawdowns quickly. Which makes TTC a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
SP500 index has more chance of extreme outcomes than TTC. Therefore, SP500 must receive a lower allocation than TTC in your portfolio. SP500 index usually has shorter drawdown period than TTC.
On a general note (since you are interested in TTC), NIHD has performed really well this year and deserves to be closely tracked for investment opportunities.
... 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