ALNYLAM PHARMACEUTICALS, INC.

79.5 +2.81 (+3.53%) Buy

ALNY investors rewarded by market outperformance

13 min read

ALNYLAM PHARMACEUTICALS, INC. was among the best performers today. It returned +3.53% to close at 79.5. During the last week it returned -0.29% and saw a maximum drawdown of -6.71% before bouncing back.

[Themes containing ALNY]

Buy-and-Hold investors in ALNY experienced a maximum drawdown of -33.01% over the last three months. It returned -16.28% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.

Trend

ALNY has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 8 days, ALNY underperformed the SP500 index on 48% days. Which indicates that on days ALNY underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ALNY was mostly loss making and delivered on average -0.22% per day. It's best return during this period (of +9.57%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -11.86%) was on Wednesday, 7 Nov, 2018. There was initially a bullish trend during this period which started on 30 Oct, 2018 and went on till 2 Nov, 2018. The bullish trend returned +18.38% to investors. This was followed by a bearish trend that started on 5 Nov, 2018 and ended on 14 Nov, 2018. This bearish trend lost -29.35% of investor capital.

On monthly basis, ALNY delivered losses in more months over the last year, than profits. ALNY delivered profits less regularly than SP500 index. ALNY significantly outperformed SP500 index in Aug 2018, when it returned +29.13% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ALNY had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Jan 2018 to Apr 2018) during which period it delivered -16.43%.

I think that stocks have been this tremendous, tremendous equalizer for people in this country. Guys who can't make a lot of money at their jobs have been able to make a lot of money in the stock market.
-- Jim Cramer

ALNY 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 fall in ALNY's volatility from 13 Sep, 2018 to 25 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 ALNY 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.

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

On a general note (since you are interested in ALNY), two large cap instruments that deserve special mention are CSCO and MSFT. They have significantly outperformed the overall market.

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