AUTOZONE INC has destroyed investor wealth on Tuesday. It lost -0.85% to close at 878.34. On a day when the overall market breadth was 35%, it closed higher than 11% of the market. In comparison, the benchmark SP500 index closed today at -0.0004%.
AZO showed a strong up trend over the last 3 months. During this period AZO gained +14.77% and saw a maximum drawdown of -9.35%. There were 4 long signals during this period that returned a cumulative of +3.43% to investors.
AZO has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 7 days, AZO underperformed the SP500 index on 50% days. Which indicates that on days AZO underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
AZO was profitable on 56% days in the last three months. During this time, it delivered on average +0.24% per day. It delivered it's worst daily return of -7.6%, during this period, on Wednesday, 17 Oct, 2018. There was initially a bearish trend during this period which started on 14 Sep, 2018 and went on till 18 Sep, 2018. The trend delivered -4.29% losses to investors. This was followed by a bullish trend that started on 1 Nov, 2018 and ended on 8 Nov, 2018. This bullish trend delivered +8.61% to investors.
AZO had 9 profitable and 3 loss making months over the last year. AZO was profitable in more months than SP500 index. AZO was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -13.16% compared to -7.28% returned by SP500 index in Oct 2018. AZO and SP500 index, both had periods of 6 consecutive profitable months.
Thirty to 40 years ago, most financial decisions were fairly simple.
-- Scott Cook
AZO 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 AZO's volatility from 13 Sep, 2018 to 18 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that AZO has significant positive skewness in it's return distribution. This indicates that investors can expect AZO to recover from drawdowns quickly. Which makes AZO a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Investors trading in AZO derivatives at this moment can consider 'Bull Call Spread' options strategy to receive better risk-adjusted returns.
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