132.99 +0.17 (+0.13%) Buy

Don't go profit booking on ATHN now, it delivered a decent return

13 min read

ATHENAHEALTH INC managed to marginally outperform the broader market on Thursday. It gained +0.13% to close at 132.99. It is currently trading -17% below it's 52 week high of 161.76.

[Themes containing ATHN]

ATHN showed a down trend over the last 3 months. During this period ATHN returned -7.75% and saw a maximum drawdown of -18.18%. There was a short signal during this period which returned +7.95%.


ATHN has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 9 days, ATHN underperformed the SP500 index on 49% days. Which indicates that on days ATHN underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

ATHN returned losses on 56% days in the last three months. During this time, it delivered on average -0.11% per day. It delivered it's best daily return of +9.66%, during this period, on Monday, 12 Nov, 2018. There was initially a bearish trend during this period which started on 18 Oct, 2018 and went on till 24 Oct, 2018. The trend delivered -6.25% losses to investors. This was followed by a bullish trend that started on 5 Nov, 2018 and ended on 7 Nov, 2018. This bullish trend delivered +2.57% to investors.

On monthly basis, ATHN delivered profits in more months over the last year, than losses. ATHN delivered profits less regularly than SP500 index. ATHN significantly outperformed SP500 index in May 2018, when it returned +22.86% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ATHN had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year.

The difference between playing the stock market and the horses is that one of the horses must win.
-- Joey Adams

ATHN 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 ATHN's volatility from 18 Sep, 2018 to 13 Dec, 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 ATHN 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 ATHN. Therefore, SP500 must receive a lower allocation than ATHN in your portfolio. SP500 index usually has shorter drawdown period than ATHN.

Based on your interest in ATHN you may find it interesting to know that MODN and ARLP have both performed similar to ATHN and can be considered by investors as alternative investment options.

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