64.85 +0.06 (+0.09%) Buy

Profit booking on the minds of VTR investors as it manages to marginally outperform broader market

13 min read

VENTAS INC performed better than the broader market on Tuesday. It returned +0.09% to close at 64.85. It is currently trading +38% above it's 52 week low of 46.96 and is down only 0% from it's 52 week high.

[Themes containing VTR]

Buy-and-Hold investors in VTR experienced a maximum drawdown of -10.42% over the last three months. It returned +9.9% during this up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +15.62%.


VTR has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 7 days, VTR underperformed the SP500 index on 45% days. Which indicates that on days VTR underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months VTR was mostly profitable and delivered on average +0.16% per day. It's best return during this period (of +3.58%) was on Thursday, 6 Dec, 2018. While it's worst loss in the same period (of -2.78%) was on Monday, 24 Sep, 2018. There was initially a bearish trend during this period which started on 18 Sep, 2018 and went on till 26 Sep, 2018. The trend delivered -8.37% losses to investors. This was followed by a bullish trend that started on 23 Nov, 2018 and ended on 3 Dec, 2018. This bullish trend delivered +3.6% to investors.

VTR had 8 profitable and 4 loss making months over the last year. During the last year, number of profitable months of VTR and SP500 index were the same. VTR was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -13.67% compared to -7.28% returned by SP500 index in Oct 2018. VTR had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

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

VTR 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 VTR's volatility from 13 Sep, 2018 to 5 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

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

Based on your interest in VTR you may find it interesting to know that AJX and WELL have both performed similar to VTR and can be considered by investors as alternative investment options.

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