BERKLEY W R CORP

74.9 -0.31 (-0.41%) Sell

WRB is a falling knife, continues to bleed every investor trying to catch it

13 min read

BERKLEY W R CORP ranked among the worst performers on Tuesday. It fell by -0.41% to close at 74.9. It is currently trading +10% above it's 52 week low of 67.76 and is down only -6% from it's 52 week high.

[Themes containing WRB]

WRB is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +0.03% for investors.

Trend

WRB has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 14 Mar, 2017 to 10 Jan, 2018. Over the last 2 years 11 months and 7 days, WRB outperformed the SP500 index on 54% days.

During the last three months WRB was mostly loss making and delivered on average -0.09% per day. It's best return during this period (of +1.93%) was on Thursday, 15 Nov, 2018. While it's worst loss in the same period (of -3.43%) was on Thursday, 11 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 3 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -5.02% of investor capital.

During the last year WRB had 8 profitable months and 4 loss making months. Profitable number of months of WRB and SP500 index were the same. WRB significantly outperformed SP500 index in Mar 2018, when it returned +6.32% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. WRB had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both WRB and SP500 index significantly outperform during months when quarterly/annual results are announced.

"My father, being a Scotsman, taught me to look after finances. I'm shrewd. Some people may call me tight.

WRB is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in WRB's volatility from 18 Sep, 2018 to 12 Oct, 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 WRB has significant positive skewness in it's return distribution. This indicates that investors can expect WRB to recover from drawdowns quickly. Which makes WRB a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

WRB has more chance of extreme outcomes than the SP500 index. Therefore, WRB must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than WRB.

On a general note (since you are interested in WRB), if you are evaluating WRB as an investment candidate, then you should read about KO which has delivered similar performance and can help diversify your portfolio.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Following
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{detail.name}} {{detail.trend}} 
 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter