ENCORE WIRE CORP has destroyed investor wealth on Friday. It delivered -0.58% to close at 47.73. It is currently trading -17% below it's 52 week high of 58.0.
WIRE showed a bearish trend over the last 3 months. During this period WIRE delivered -6.59% and saw a maximum drawdown of -19.65%. There were 2 short signals during this period that returned a cumulative of +5.47% to investors.
WIRE has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 3 Apr, 2018 to 24 Oct, 2018. Over the last 2 years 11 months and 10 days, WIRE outperformed the SP500 index on 53% days.
During the last three months WIRE was mostly loss making and delivered on average -0.09% per day. It's best return during this period (of +9.71%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -4.89%) was on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 1 Nov, 2018 and went on till 7 Nov, 2018. This bullish trend returned +15.55% to investors.
The last 12 months saw WIRE's investors making profits in 6 months and incurring losses in 6 months. WIRE was less consistent in delivering monthly returs than SP500 index. WIRE significantly outperformed SP500 index in Nov 2018, when it returned +13.03% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. WIRE had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.
Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.
-- Charles Dickens
WIRE 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 WIRE's volatility from 25 Sep, 2018 to 1 Nov, 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 WIRE has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.
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