24.27 +0.2 (+0.83%) Sell

VREX investors hold onto their investments as it marginally outperforms

13 min read

VAREX IMAGING CORP delivered stellar performance today. It gained +0.83% to close at 24.27. During the last week it returned -5.12% and saw a maximum drawdown of -5.9% before bouncing back.

[Themes containing VREX]

Buy-and-Hold investors in VREX experienced a maximum drawdown of -22.0% over the last three months. It returned -21.07% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +21.07% for investors.


VREX has been underperforming the SP500 index in recent time, after having outperformed till 1 Feb, 2018. Over the last 1 year 10 months and 11 days, VREX underperformed the SP500 index on 49% days. Which indicates that on days VREX underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

VREX returned losses on 51% days in the last three months. During this time, it delivered on average -0.35% per day. It delivered it's worst daily return of -6.57%, during this period, on Tuesday, 4 Dec, 2018. There was initially a bearish trend during this period which started on 26 Sep, 2018 and went on till 2 Oct, 2018. The trend delivered -6.16% losses to investors. This was followed by a bullish trend that started on 29 Oct, 2018 and ended on 5 Nov, 2018. This bullish trend delivered +10.23% to investors.

On monthly basis, VREX delivered profits in more months over the last year, than losses. VREX delivered profits less regularly than SP500 index. VREX was also a more risky investment than SP500 index as it's worst month in the last year, Aug 2018, returned -17.89% compared to -7.28% returned by SP500 index in Oct 2018. VREX had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year. It is interesting to note that both VREX and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Money is like manure. You have to spread it around or it smells.

VREX 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 VREX's volatility from 27 Sep, 2018 to 7 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that VREX has significant positive skewness in it's return distribution. This indicates that investors can expect VREX to recover from drawdowns quickly. Which makes VREX 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 VREX. Therefore, SP500 must receive a lower allocation than VREX in your portfolio. VREX usually has shorter drawdown period than the SP500 index.

Based on your interest in VREX you may find it interesting to know that LULU, SQ and ABMD are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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