115.46 -0.72 (-0.62%) Sell

Doubt in the minds of VRSK investors as it delivered massive losses

13 min read

VERISK ANALYTICS, INC. delivered massive losses today. It fell by -0.62% to close at 115.46. It's recent 5 day performance has been +1.31%, +0.26%, -0.06%, -3.01% and -1.99%.

[Themes containing VRSK]

VRSK is currently in a bearish trend. Over the last three months trading short signals has not been a profitable strategy for VRSK's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -5.07%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to VRSK.


VRSK has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 14 Sep, 2017 to 19 Nov, 2018. Over the last 2 years 11 months and 9 days, VRSK outperformed the SP500 index on 56% days.

During the last three months VRSK delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +2.65%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -4.53%) was on Wednesday, 10 Oct, 2018. The longest stort-term trends during this period were 5 profitable and losing days. The bullish trend (which returned +6.61%) started on 5 Nov, 2018 and went on till 9 Nov, 2018 while the bearish trend (which returned -3.11%) started on 16 Nov, 2018 and went on till 23 Nov, 2018.

During the last year VRSK had 9 profitable months and 3 loss making months. VRSK returned profits in more months than SP500 index. VRSK significantly outperformed SP500 index in Aug 2018, when it returned +7.66% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. VRSK had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year. It is interesting to note that both VRSK and SP500 index significantly outperform during months when quarterly/annual results are announced.

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VRSK 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 VRSK's volatility from 3 Oct, 2018 to 1 Nov, 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 VRSK has significant positive skewness in it's return distribution. This indicates that investors can expect VRSK to recover from drawdowns quickly. Which makes VRSK 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 VRSK. Therefore, SP500 must receive a lower allocation than VRSK in your portfolio. SP500 index usually has shorter drawdown period than VRSK.

On a general note (since you are interested in VRSK), AMZN is a large cap that deserves to be closely tracked for investment opportunities.

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