ANTHEM, INC. managed to marginally outperform the broader market on Wednesday. It gained +0.84% to close at 278.56. On a day when the overall market breadth was 35%, it closed higher than 4% of the market. In comparison, the benchmark SP500 index closed today at +0.54%.
Buy-and-Hold investors in ANTM experienced a maximum drawdown of -6.75% over the last three months. It gained +2.87% 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.
ANTM was profitable on 51% days in the last three months. During this time, it delivered on average +0.06% per day. It delivered it's best daily return of +6.59%, during this period, on Wednesday, 7 Nov, 2018. There was initially a bearish trend during this period which started on 8 Nov, 2018 and went on till 14 Nov, 2018. The trend delivered -3.44% losses to investors. This was followed by a bullish trend that started on 21 Nov, 2018 and ended on 29 Nov, 2018. This bullish trend delivered +5.08% to investors.
ANTM had 7 profitable and 5 loss making months over the last year. During the last year, ANTM underperformed SP500 index on monthly return basis. ANTM significantly outperformed SP500 index in Jan 2018, when it returned +9.67% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ANTM had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year. It is interesting to note that both ANTM and SP500 index significantly outperform during months when quarterly/annual results are announced.
If you have trouble imagining a 20% loss in the stock market, you shouldn't be in stocks.
-- John Bogle
ANTM 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 ANTM's volatility from 14 Sep, 2018 to 1 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that ANTM 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 ANTM derivatives at this moment can consider 'Bull Call Spread' options strategy to receive better risk-adjusted returns.
On a general note (since you are interested in ANTM), two instruments that have delivered similar performance as ANTM are DNB and PEBK. They are suitable as good alternative investment candidates that can diversify your portfolio.
... 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