Microchip Technology Incorporated (MCHP)

Nasdaq Stock Exchange
USD
US5950171042
19 March 1993  –  21 January 2022

Performance

Annualized Return
22.82%
Sharpe Ratio
0.66
Maximum Drawdown
-62.54%

Metrics

Metric Microchip Technology Incorporated
Initial Balance $10,000
Final Balance $3,773,051
Returns
Month-To-Date -15.77%
Year-To-Date -15.77%
3M -1.8%
6M 4.87%
Annual Return (1Y) -2.7%
Annual Return (3Y) 25.34%
Annual Return (5Y) 18.81%
Annual Return (10Y) 17.55%
Annual Return (All) 22.82%
Enh Ann Return 21.8%
Best Year 424.19%
Worst Year -34.88%
Risk
Annual Volatility 48.67%
Max Drawdown -62.54%
Sharpe Ratio 0.66
Sortino Ratio 1.01
Adjusted Sortino (S/√2) 0.71
Ulcer Index 0.21
Gain to Pain Ratio 0.13

  • Initial balance: The amount of starting capital used to invest in the asset or portfolio. In this case, we're starting with a $10,000 investment on March 1993.
  • Final balance: The amount of capital we've accrued over time as of January 2022.
  • Annual return: Also known as annualized return, or CAGR (Compound Annual Growth Rate), measures how much an investment has increased on average each year, during a specific time period. The time period in this case is approximately 29 year(s). Even a small difference in return can have a big impact on the final balance over a long period of time.
  • Annual volatility: Basically indicates how much, in percentage points, the investment can deviate from its annual return, under most circumstances. An investment with an annual return of 5% and an annual volatility of 10% would indicate returns from approximately -5% to 15% most of the time. A lower volatility is usually preferred to ensure more steady returns over time.
  • Best year: The best performance attained over its lifetime in a given year.
  • Worst year: The worst performance undergone over its lifetime in a given year.
  • Max drawdown: The largest percentage drop from a peak to a trough of an asset or portfolio, before a new peak is attained. Maximum drawdown is an indicator of downside risk over a specified time period.
  • Sharpe Ratio: The Sharpe ratio measures the performance of an investment compared to a risk-free asset, after adjusting for its risk. A Sharpe Ratio above 1 is considered good.
  • Sortino Ratio: The Sortino Ratio is a variation of the Sharpe ratio that only penalizes the investment for negative volatility/outcomes, and not for positive volatility. A Sortino Ratio above 1 is considered good.
  • Adjusted Sortino Ratio: Sortino Ratio/√2. To allow for comparing the Sortino ratio to the Sharpe ratio, we multiply the risk measure of the Sortino ratio by the square root of 2 (which is the same as dividing the Sortino ratio by the square root of 2).
  • Ulcer Index: The Ulcer Index (UI) is a technical indicator that measures downside risk in terms of both the depth and duration of price declines.
  • Gain to Pain Ratio: The sum of all returns divided by the absolute value of the sum of all negative returns. In essence, the GPR shows the ratio of net returns to the losses incurred in getting those returns.

Chart

Table

Year Microchip Technology Incorporated
1993 424.19%
1994 58.65%
1995 32.73%
1996 39.37%
1997 -11.54%
1998 23.33%
1999 84.97%
2000 -27.87%
2001 76.57%
2002 -5.26%
2003 37%
2004 -19.84%
2005 22.8%
2006 4.37%
2007 -0.83%
2008 -34.88%
2009 57.77%
2010 24.58%
2011 10.31%
2012 -7.2%
2013 42.39%
2014 4.01%
2015 6.32%
2016 41.67%
2017 39.47%
2018 -16.71%
2019 48.07%
2020 33.72%
2021 27.46%
2022 -15.77%

Microchip Technology Incorporated had 21 positive years and 9 negative years. That's a positive ratio of 70%.

Table

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
1993 0% 0% 8.4% 31.7% 9.4% 25.8% -2.6% 63.2% 11.8% 23.1% -0% 21.9% 179.2%
1994 1.9% 11.9% -14% 9.8% 10.7% 13.7% -9.2% 14.8% 6.8% 19.4% -4.8% -7.6% 60.1%
1995 -18.6% 12.8% 11.4% 0.4% 5.3% 22.3% 5.8% -1.3% -0.3% 4.8% 2% -9.9% 41.7%
1996 -8.6% -16.9% -0.5% -7.7% -0.5% 0% 20.2% 21.7% 0.7% -6.4% 36.4% 6.5% 61.1%
1997 12.4% -2% -19.7% 4.2% 13.6% -16.2% 25.2% 8.7% 11.4% -11.6% -12.2% -14.3% 7.8%
1998 -23% 4.8% -13.2% 35.1% -13.7% 6.7% 17.3% -40.3% 19.5% 23.7% 28.6% 6.3% 51%
1999 -21.9% -5.6% 27.1% 1.1% 25.4% 8% 5.8% 9.2% -6.2% 29.7% -4.9% 8% 79.8%
2000 -8.1% 49% 5.3% -5.6% -9.6% 3.8% 19.2% -2% -27.1% -4.3% -26.1% -6.2% 9%
2001 37% -20.6% 6% 14.3% -20.7% 45.7% 8.6% -1.7% -24.9% 16.5% 15.7% 7.3% 84.2%
2002 -2.7% -9.3% 22.4% 6.4% 0.8% -8.3% -19.7% -4.4% -2.9% 19.3% 18% -15% 17.2%
2003 -9.7% 15.3% -21.8% 4.5% 11.2% 7.1% 6.7% 6.1% -14.5% 36.9% 5.2% -3.2% 43.4%
2004 -14% 0.4% -8.2% 6.1% 13% -0.3% -8.1% -8.7% 1.7% 12.7% -6.7% -5.6% -14.1%
2005 -2% 5.7% -5.3% 9.5% 4.5% -0.1% 4.9% 0.6% -3.2% 0.1% 11.3% -3.7% 24%
2006 17.3% -6.2% 3.1% 2.6% -7.4% -2.2% -4% 6.9% -5.1% 1.6% 4.3% -4.1% 8%
2007 6.3% 3.2% -0.2% 13.5% 1.3% -8.7% -2% 6.9% -5.7% -8.7% -12.4% 9.1% 3.2%
2008 1.6% -2.5% 6.3% 12.3% 1.1% -17.1% 4.6% 1.3% -8.1% -16.3% -23.6% 5.6% -31.2%
2009 -2.9% 0.7% 12.9% 8.5% -4.7% 4.5% 19.4% -0.2% -0.2% -9.6% 10.9% 10.7% 51.6%
2010 -11.2% 6.2% 4.1% 3.7% -3.5% -0.4% 9.8% -7.9% 13.4% 2.3% 5.5% 2.8% 25.1%
2011 6.6% 1.2% 3% 8% -2.8% -4.1% -11% -1.7% -5.2% 16.3% -2.5% 4.9% 14.5%
2012 0.7% -1.3% 3.1% -4.9% -11.3% 6.6% 0.9% 5.1% -5.8% -4.3% -1.8% 7.1% -5.4%
2013 2.6% 10.1% 0.8% -1% 1.1% 2.1% 6.7% -1.5% 3.8% 6.6% 1.6% 3.4% 37.6%
2014 0.2% 2.3% 4.9% -0.5% 0.9% 2.5% -7.8% 9.3% -3.3% -8.7% 5.6% -0.1% 6.7%
2015 -0% 14.5% -4.6% -2.5% 3.9% -3.5% -9.7% -0.8% 2.2% 12.1% 0.7% -3.6% 9.5%
2016 -3.7% 0.1% 8.3% 0.8% 7.2% -1.8% 9.6% 11.9% 0.4% -2.6% 9.9% -3.1% 38.1%
2017 5% 8.2% 1.7% 2.4% 10.7% -7.3% 3.7% 8.9% 3.4% 5.6% -7.9% 1% 35.6%
2018 8.4% -6.2% 2.7% -8.4% 16.9% -6.6% 2.7% -7.5% -8.3% -16.6% 14.6% -4.1% -11.9%
2019 11.7% 8.5% -4.5% 20.4% -19.5% 8.3% 8.9% -8.2% 7.6% 1.5% 0.7% 10.8% 44.8%
2020 -6.9% -6.6% -25.3% 29.4% 9.9% 9.7% -3.4% 8.2% -6.3% 2.3% 28.3% 2.8% 48%
2021 -1.4% 12.4% 1.7% -3.2% 4.7% -4.6% -4.4% 10.3% -2.5% -3.5% 12.9% 4.4% 31.2%
2022 -15.8% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% -16.7%
Pos 44.8% 64.3% 62.1% 72.4% 65.5% 51.7% 62.1% 55.2% 41.4% 62.1% 62.1% 55.2% 83.3%
Avg -1.3% 3.2% 0.6% 6.6% 2% 3% 3.4% 3.7% -1.6% 4.9% 3.8% 1.1% 31.1%

Drawdown Periods

Simply said, a drawdown is the "pain" period experienced by an investor between a peak (new highs) and subsequent valley (a low point before moving higher). In the table below are the fifth largest drawdowns encountered for the portfolio/asset in question.

Microchip Technology Incorporated

start valley end Drawdown days
1997-09-24 1998-08-31 1999-06-16 -62.54% 630
2000-04-10 2000-12-20 2002-05-14 -58.76% 764
2007-06-18 2009-01-20 2010-12-03 -57.96% 1264
2002-05-21 2002-09-16 2003-11-03 -53.55% 531
1995-11-20 1996-07-15 1996-11-15 -52.14% 361

The Microchip Technology Incorporated took approximately 24 months on average to recover from a major drawdown.

Underwater plot

The underwater plot shows you the drawdown periods on a chart. Whereas the performance chart usually gives you a positive viewpoint, the underwater plot gives you a pessimistic viewpoint. It helps you to visualize downtrends that occurred and how long it took for the portfolio's value to rebound to hit a new high after suffering a loss.

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