19.9 +0.04 (+0.2%) Buy

Sun shines over AMD investors as it was among the best performers

13 min read

AMD outperformed today. On a longer term basis, investors in ADVANCED MICRO DEVICES INC made -0.06% per day. Friday's performance of +0.2% was a outperformance compared to it's daily average.

[Themes containing AMD]

Buy-and-Hold investors in AMD experienced a maximum drawdown of -48.33% over the last three months. It fell by -38.64% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +13.31%.


AMD has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 16 Feb, 2016 to 14 Sep, 2018. Over the last 2 years 11 months and 10 days, AMD outperformed the SP500 index on 52% days.

AMD returned losses on 54% days in the last three months. During this time, it delivered on average -0.63% per day. It delivered it's worst daily return of -15.45%, during this period, on Thursday, 25 Oct, 2018. The longest stort-term trends during this period were 5 profitable and losing days. The bullish trend (which returned +13.77%) started on 23 Nov, 2018 and went on till 29 Nov, 2018 while the bearish trend (which returned -16.76%) started on 2 Oct, 2018 and went on till 8 Oct, 2018.

During the last year AMD had 8 profitable months and 4 loss making months. Profitable number of months of AMD and SP500 index were the same. AMD was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -42.04% compared to -7.28% returned by SP500 index in Oct 2018. AMD and SP500 index, both had periods of 6 consecutive profitable months. It is interesting to note that both AMD and SP500 index significantly outperform during months when quarterly/annual results are announced.

Not everything that can be counted counts, and not everything that counts can be counted.
-- Albert Einstein

AMD is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in AMD's volatility from 27 Sep, 2018 to 3 Oct, 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 AMD 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 AMD derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.

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

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

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