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.
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.
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