ANALOG DEVICES INC

87.27 -1.17 (-1.35%) Sell

Prayers for ADI investors as it delivered massive losses

13 min read

ANALOG DEVICES INC delivered massive losses on Friday. It delivered -1.35% to close at 87.27. It is currently trading -14% below it's 52 week high of 102.1.

[Themes containing ADI]

ADI is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +0.53% for investors.

Trend

ADI has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 7 Jan, 2016 to 6 Jun, 2018. Over the last 2 years 11 months and 10 days, ADI outperformed the SP500 index on 53% days.

During the last three months ADI was mostly loss making and delivered on average -0.05% per day. It's best return during this period (of +5.12%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -5.84%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 1 Oct, 2018 and ended on 8 Oct, 2018. This bearish trend lost -6.62% of investor capital.

The last 12 months saw ADI's investors making profits in 5 months and incurring losses in 7 months. ADI was less consistent in delivering monthly returs than SP500 index. ADI significantly outperformed SP500 index in May 2018, when it returned +11.25% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ADI and SP500 index, both had periods of 2 consecutive losing months.

Financial support is one thing, but I always think what becomes really sacrificial is your time.
-- Cliff Richard

ADI is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in ADI's volatility from 19 Sep, 2018 to 20 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that ADI 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.

Investors trading in ADI derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in ADI you may find it interesting to know that TPNL, NIHD and HEAR have all shown remarkable performance this year and deserve to be on every investor's watchlist.

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