Stop-loss on the minds of YORW investors as it underperforms broader market

YORK WATER CO significantly underperformed today. It lost -0.35% to close at 34.32. During the last week it grew by +5.94%.

[Themes containing YORW]

Buy-and-Hold investors in YORW experienced a maximum drawdown of -4.08% over the last three months. It grew by +14.4% during this strong 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 +6.86%.

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Monthly Performance

Alpha (outperformance)

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Volatility

Return distribution

YORW has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 9 days, YORW outperformed the SP500 index on 50% days. Which indicates that on days YORW outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

During the last three months YORW was mostly profitable and delivered on average +0.22% per day. It's best return during this period (of +3.45%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -2.75%) was on Wednesday, 31 Oct, 2018. There was initially a bullish trend during this period which started on 15 Oct, 2018 and went on till 22 Oct, 2018. The bullish trend returned +6.62% to investors. This was followed by a bearish trend that started on 23 Oct, 2018 and ended on 26 Oct, 2018. This bearish trend lost -3.38% of investor capital.

YORW had 7 profitable and 5 loss making months over the last year. During the last year, YORW underperformed SP500 index on monthly return basis. YORW was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -11.22% compared to -7.28% returned by SP500 index in Oct 2018. YORW had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

What we really want to do is what we are really meant to do. When we do what we are meant to do, money comes to us, doors open for us, we feel useful, and the work we do feels like play to us.
-- Julia Cameron

YORW 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 YORW's volatility from 2 Oct, 2018 to 11 Dec, 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 YORW 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.

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

Based on your interest in YORW you may find it interesting to know that IX is highly volatile and investors investing in it must take extreme caution. Consider either reducing your exposure to IX or sufficiently diversifying your portfolio.