CE investors dump it

CELANESE CORP has destroyed investor wealth on Thursday. It fell by -1.08% to close at 87.81. It is currently trading -25% below it's 52 week high of 118.11.

[Themes containing CE]

Buy-and-Hold investors in CE experienced a maximum drawdown of -24.86% over the last three months. It fell by -22.41% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +11.19%.

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Monthly Performance

Alpha (outperformance)

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Volatility

Return distribution

CE has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 16 Sep, 2016 to 6 Jun, 2018. Over the last 2 years 11 months and 9 days, CE outperformed the SP500 index on 53% days.

During the last three months CE was mostly loss making and delivered on average -0.38% per day. It's best return during this period (of +3.27%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -6.72%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 4 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -14.62% of investor capital.

During the last year CE had 5 profitable months and 7 loss making months. CE returned profits in fewer months than SP500 index. CE was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -15.03% compared to -7.28% returned by SP500 index in Oct 2018. CE 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 -18.53%. It is interesting to note that both CE and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Your net worth to the world is usually determined by what remains after your bad habits are subtracted from your good ones.

CE 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 CE's volatility from 28 Sep, 2018 to 29 Oct, 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 CE 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 CE. Therefore, SP500 must receive a lower allocation than CE in your portfolio. SP500 index usually has shorter drawdown period than CE.

On a general note (since you are interested in CE), two large cap instruments that deserve special mention are PFE and AMZN. They have significantly outperformed the overall market.