Backtest
The backtest results indicate that LOAN consistently suffers negative returns after earnings misses, with a 30-day return of -8.34% and a 0% win rate across multiple time frames. This demonstrates a clear adverse market reaction specific to LOAN. In contrast, the broader Mortgage Real Estate Investment Trusts industry shows no significant price impact from earnings misses, suggesting sector-wide resilience or pre-priced expectations. Therefore, investors should exercise caution with LOAN after earnings misses, as the data implies a high likelihood of sustained underperformance, while earnings misses in the industry may not warrant immediate trading actions.
