92.68 -0.89 (-0.96%) Buy

Don't consider investing in AWK now, it is risky at the moment

13 min read

AMERICAN WATER WORKS COMPANY, INC. was among the worst performers today. It returned -0.96% to close at 92.68. It's recent 5 day performance has been -3.66%, -0.53%, +0.56%, +0.66% and -1.01%.

[Themes containing AWK]

AWK showed a up trend over the last 3 months. During this period AWK gained +5.82% and saw a maximum drawdown of -5.24%. There were 2 long signals during this period that returned a cumulative of +1.28% to investors.


AWK has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 14 days, AWK outperformed the SP500 index on 54% days.

AWK was profitable on 55% days in the last three months. During this time, it delivered on average +0.1% per day. It delivered it's worst daily return of -3.66%, during this period, on Monday, 17 Dec, 2018. There was initially a bearish trend during this period which started on 24 Sep, 2018 and went on till 26 Sep, 2018. The trend delivered -3.07% losses to investors. This was followed by a bullish trend that started on 30 Nov, 2018 and ended on 7 Dec, 2018. This bullish trend delivered +5.65% to investors.

On monthly basis, AWK delivered profits in more months over the last year, than losses. AWK delivered profits less regularly than SP500 index. AWK significantly outperformed SP500 index in Nov 2018, when it returned +7.77% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. AWK had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both AWK and SP500 index significantly outperform during months when quarterly/annual results are announced.

"There are two kinds of investors, be they large or small: those who don't know where the market is headed, and those who don't know that they don't know. Then again, there is a third type of investor -the investment professional, who indeed knows that he or she doesn't know, but whose livelihood depends upon appearing to know.

AWK 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 fall in AWK's volatility from 19 Sep, 2018 to 2 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 AWK has significant positive skewness in it's return distribution. This indicates that investors can expect AWK to recover from drawdowns quickly. Which makes AWK a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in AWK), RGSE has performed really well and deserves to be closely tracked for investment opportunities.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{}} {{detail.trend}} 
If you liked what you read here ...

... 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
Share with friends   WhatsApp   Facebook   Twitter