70.42 +0.26 (+0.37%) Buy

AEE investors rewarded by market outperformance

13 min read

AMEREN CORP was among the best performers on Friday. It returned +0.37% to close at 70.42. On a day when the overall market breadth was 35%, it closed higher than 77% of the market. In comparison, the benchmark SP500 index closed today at -0.0233%.

[Themes containing AEE]

Buy-and-Hold investors in AEE experienced a maximum drawdown of -5.71% over the last three months. It returned +6.86% during this 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 +1.06%.


AEE has been outperforming the SP500 index in recent time. AEE is currently at it's peak outperformance to the SP500 index and can be considered for investment. Over the last 2 years 11 months and 3 days, AEE outperformed the SP500 index on 52% days.

During the last three months AEE was mostly profitable and delivered on average +0.11% per day. It's best return during this period (of +1.99%) was on Wednesday, 24 Oct, 2018. While it's worst loss in the same period (of -2.56%) was on Thursday, 11 Oct, 2018. There was initially a bearish trend during this period which started on 14 Sep, 2018 and went on till 19 Sep, 2018. The trend delivered -2.77% losses to investors. This was followed by a bullish trend that started on 5 Nov, 2018 and ended on 13 Nov, 2018. This bullish trend delivered +7.93% to investors.

On monthly basis, AEE delivered profits in more months over the last year, than losses. AEE delivered profits in more months than SP500 index. AEE significantly outperformed SP500 index in Nov 2018, when it returned +6.26% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. AEE and SP500 index, both had periods of 6 consecutive profitable months.

I made my money the old-fashioned way. I was very nice to a wealthy relative right before he died.
-- Malcolm Forbes

AEE 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 AEE's volatility from 10 Sep, 2018 to 31 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that AEE has significant positive skewness in it's return distribution. This indicates that investors can expect AEE to recover from drawdowns quickly. Which makes AEE a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in AEE), AMD is a mid cap that deserves to be closely tracked for investment opportunities.

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