ACHAOGEN, INC.

1.8 +0.07 (+4.05%) Sell

AKAO does a dead cat bounce, it's still too early to buy into it

13 min read

ACHAOGEN, INC. delivered good returns today. It grew by +4.05% to close at 1.8. During the last week it grew by +21.62% and saw a maximum drawdown of -6.08% before bouncing back.

[Themes containing AKAO]

Buy-and-Hold investors in AKAO experienced a maximum drawdown of -70.24% over the last three months. It returned -60.7% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +60.7% for investors.

Trend

AKAO has been underperforming the SP500 index in recent time, after having outperformed till 10 Mar, 2017. Over the last 2 years 11 months and 8 days, AKAO underperformed the SP500 index on 53% days.

During the last three months AKAO was mostly loss making and delivered on average -1.27% per day. It's best return during this period (of +20.86%) was on Monday, 10 Dec, 2018. While it's worst loss in the same period (of -15.09%) was on Friday, 9 Nov, 2018. There was initially a bullish trend during this period which started on 1 Oct, 2018 and went on till 3 Oct, 2018. The bullish trend returned +16.41% to investors. This was followed by a bearish trend that started on 2 Nov, 2018 and ended on 16 Nov, 2018. This bearish trend lost -82.64% of investor capital.

On monthly basis, AKAO delivered losses in more months over the last year, than profits. AKAO delivered profits less regularly than SP500 index. AKAO was also a more risky investment than SP500 index as it's worst month in the last year, Nov 2018, returned -58.18% compared to -7.28% returned by SP500 index in Oct 2018. AKAO had a longer winning streak of losing months than SP500 index. It went down in 7 straight months (from May 2018 to Nov 2018) during which period it delivered -176.7%. It is interesting to note that both AKAO and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Watch your finances like a hawk.

AKAO is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in AKAO's volatility from 14 Sep, 2018 to 17 Sep, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that AKAO has significant negative skewness in it's return distribution. This indicates that AKAO is very risky for short-term investment and can significantly underperform for long durations.

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

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

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