4.05 +0.06 (+1.5%) Buy

AUO continues to mint money for it's investors

13 min read

AU OPTRONICS CORP (Foreign) delivered stellar performance on Tuesday. It gained +1.5% to close at 4.05. It is currently trading -18% below it's 52 week high of 4.99.

[Themes containing AUO]

AUO showed a down trend over the last 3 months. During this period AUO returned -4.48% and saw a maximum drawdown of -15.01%. There was a short signal during this period which returned +0.48%.


AUO has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 14 days, AUO outperformed the SP500 index on 49% days. Which indicates that on days AUO outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

AUO returned losses on 56% 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 +4.84%, during this period, on Thursday, 27 Sep, 2018. There was initially a bearish trend during this period which started on 2 Oct, 2018 and went on till 5 Oct, 2018. The trend delivered -5.29% losses to investors. This was followed by a bullish trend that started on 12 Nov, 2018 and ended on 16 Nov, 2018. This bullish trend delivered +6.03% to investors.

On monthly basis, AUO delivered losses in more months over the last year, than profits. AUO delivered profits less regularly than SP500 index. AUO significantly outperformed SP500 index in Jan 2018, when it returned +14.05% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. AUO had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -14.23%.

But having said that, what's happening with campaign finance reform and our political culture is devastating.
-- Robert McChesney

AUO 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 surge in AUO's volatility from 19 Sep, 2018 to 31 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that AUO 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 AUO. Therefore, SP500 must receive a lower allocation than AUO in your portfolio. SP500 index usually has shorter drawdown period than AUO.

On a general note (since you are interested in AUO), CSCO is a large cap that deserves to be closely tracked for investment opportunities.

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