WASHINGTON REAL ESTATE INVESTMENT TRUST

27.02 +0.16 (+0.6%) Sell

WRE investors hold onto their investments as it marginally outperforms

13 min read

WASHINGTON REAL ESTATE INVESTMENT TRUST ranked among the best performers today. It delivered +0.6% to close at 27.02. During the last week it delivered +0.22% and saw a maximum drawdown of -2.54% before bouncing back.

[Themes containing WRE]

Buy-and-Hold investors in WRE experienced a maximum drawdown of -15.16% over the last three months. It delivered -13.15% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +6.02%.

Trend

WRE has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 3 Aug, 2016 to 27 Feb, 2018. Over the last 2 years 11 months and 3 days, WRE underperformed the SP500 index on 48% days. Which indicates that on days WRE underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months WRE was mostly loss making and delivered on average -0.21% per day. It's best return during this period (of +2.32%) was on Tuesday, 23 Oct, 2018. While it's worst loss in the same period (of -5.82%) was on Tuesday, 27 Nov, 2018. The longest stort-term trends during this period were 4 profitable and losing days. The bullish trend (which returned +4.05%) started on 2 Nov, 2018 and went on till 7 Nov, 2018 while the bearish trend (which returned -6.12%) started on 9 Oct, 2018 and went on till 12 Oct, 2018.

The last 12 months saw WRE's investors making profits in 6 months and incurring losses in 6 months. WRE was less consistent in delivering monthly returs than SP500 index. WRE was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -11.79% compared to -7.28% returned by SP500 index in Oct 2018. WRE had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

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WRE 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 WRE's volatility from 13 Sep, 2018 to 6 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that WRE has significant positive skewness in it's return distribution. This indicates that investors can expect WRE to recover from drawdowns quickly. Which makes WRE a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in WRE you may find it interesting to know that TWTR, SQ and AMD are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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