Machinery-Constr And Mining THEME

1403.6 +3.56 (+0.25%) Sell

Optimize theme

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

13 min read

Machinery-Constr And Mining delivered massive losses today. It gained +0.25% to close at 1403.6. It's recent 5 day performance has been -1.03%, -0.49%, -0.84%, +2.45% and -0.38%.

[Theme constituents]

~MACHINERYCONST showed a strong down trend over the last 3 months. During this period ~MACHINERYCONST returned -23.41% and saw a maximum drawdown of -24.82%. There were 2 short signals during this period that returned a cumulative of +10.87% to investors.

Trend

~MACHINERYCONST has been underperforming the SP500 index in recent time, after having outperformed till 19 Jan, 2018. Over the last 2 years 11 months and 14 days, ~MACHINERYCONST outperformed the SP500 index on 52% days.

~MACHINERYCONST returned losses on 62% days in the last three months. During this time, it delivered on average -0.4% per day. It delivered it's best daily return of +6.53%, during this period, on Thursday, 1 Nov, 2018. There was initially a bearish trend during this period which started on 21 Sep, 2018 and went on till 1 Oct, 2018. The trend delivered -4.75% losses to investors. This was followed by a bullish trend that started on 29 Oct, 2018 and ended on 1 Nov, 2018. This bullish trend delivered +12.0% to investors.

On monthly basis, ~MACHINERYCONST delivered profits and losses in equal number of months. ~MACHINERYCONST delivered profits less regularly than SP500 index. ~MACHINERYCONST was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -14.85% compared to -7.75% returned by SP500 index in Dec 2018. ~MACHINERYCONST had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both ~MACHINERYCONST and SP500 index significantly outperform during months when quarterly/annual results are announced.

The difference between succeeding and failing is consistency.
-- Don Connelly

~MACHINERYCONST 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 ~MACHINERYCONST's volatility from 2 Oct, 2018 to 1 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that ~MACHINERYCONST 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.

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

On a general note (since you are interested in ~MACHINERYCONST), if you are an investor in ICPT, you need to be extra careful (consider limiting your exposure or diversifying) as it is extremely unpredictable and therefore risky.

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