ANTHEM, INC.

278.56 +2.34 (+0.84%) Buy

ANTM continues it's uptrend, although on a weaker note

13 min read

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%.

[Themes containing ANTM]

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.

Trend

ANTM has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 8 days, ANTM outperformed the SP500 index on 54% days.

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.

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

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.

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