25.26 +1.93 (+7.63%) Buy

Joy for AZUL investors as it delivers great returns

13 min read

AZUL ranked among the best performers today. On a longer term basis, investors in AZUL SA (Foreign) made +0.08% per day. Tuesday's performance of +7.63% was a outperformance compared to it's daily average.

[Themes containing AZUL]

Buy-and-Hold investors in AZUL experienced a maximum drawdown of -15.27% over the last three months. It delivered +59.37% during this strong bullish trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +24.5%.


AZUL has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 29 Mar, 2018 to 13 Sep, 2018. Over the last 1 year and 8 months, AZUL outperformed the SP500 index on 54% days.

During the last three months AZUL was mostly profitable and delivered on average +0.83% per day. It's best return during this period (of +14.2%) was on Monday, 8 Oct, 2018. While it's worst loss in the same period (of -8.54%) was on Monday, 26 Nov, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 2 Oct, 2018 and went on till 9 Oct, 2018. This bullish trend returned +30.51% to investors.

The last 12 months saw AZUL's investors making profits in 7 months and incurring losses in 5 months. AZUL was less consistent in delivering monthly returs than SP500 index. AZUL significantly outperformed SP500 index in Oct 2018, when it returned +43.75% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. AZUL 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 AZUL and SP500 index significantly outperform during months when quarterly/annual results are announced.

I think that stocks have been this tremendous, tremendous equalizer for people in this country. Guys who can't make a lot of money at their jobs have been able to make a lot of money in the stock market.
-- Jim Cramer

AZUL is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in AZUL's volatility from 13 Sep, 2018 to 30 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 AZUL has significant positive skewness in it's return distribution. This indicates that investors can expect AZUL to recover from drawdowns quickly. Which makes AZUL a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in AZUL), two instruments that have delivered similar performance as AZUL are GPIC and MUR. They are suitable as good alternative investment candidates that can diversify your portfolio.

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