UDR investors making the most while the sun shines
14 Dec, 201813 min read
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UDR, INC. delivered good returns on Friday. It grew by +0.26% to close at 42.01. It is currently trading +27% above it's 52 week low of 32.92 and is down only -2% from it's 52 week high.
UDR is currently in a up trend. The previous long signal in UDR has not been profitable for investors in general. If you are invested in UDR at current levels please make sure that your allocation is limited and that your portfolio is well diversified.
UDR has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, UDR underperformed the SP500 index on 49% days. Which indicates that on days UDR underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
During the last three months UDR was mostly profitable and delivered on average +0.07% per day. It's best return during this period (of +2.7%) was on Thursday, 6 Dec, 2018. While it's worst loss in the same period (of -3.6%) was on Thursday, 11 Oct, 2018. There was initially a bearish trend during this period which started on 10 Oct, 2018 and went on till 12 Oct, 2018. The trend delivered -5.58% losses to investors. This was followed by a bullish trend that started on 5 Nov, 2018 and ended on 13 Nov, 2018. This bullish trend delivered +5.71% to investors.
UDR had 8 profitable and 4 loss making months over the last year. During the last year, number of profitable months of UDR and SP500 index were the same. UDR significantly outperformed SP500 index in Nov 2018, when it returned +8.75% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. UDR had a longer winning streak of profitable months than SP500 index. It went up in 7 straight months (from Mar 2018 to Sep 2018) during which period it delivered +20.91%.
It's not the employer who pays the wages. Employers only handle the money. It's the customer who pays the wages.
-- Henry Ford
UDR is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in UDR's volatility from 18 Sep, 2018 to 31 Oct, 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 UDR has significant positive skewness in it's return distribution. This indicates that investors can expect UDR to recover from drawdowns quickly. Which makes UDR a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
UDR has more chance of extreme outcomes than the SP500 index. Therefore, UDR must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than UDR.
On a general note (since you are interested in UDR), two instruments that deserve special mention are NSPR and AMRH. They have significantly outperformed the overall market.
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