CHINA TELECOM CORP LTD (FOREIGN)

50.61 +0.33 (+0.66%) Buy

Party time for CHA investors as it was among the best performers

13 min read

CHINA TELECOM CORP LTD (Foreign) was among the best performers today. It returned +0.66% to close at 50.61. During the last week it returned -4.71% and saw a maximum drawdown of -5.33% before bouncing back.

[Themes containing CHA]

CHA is currently in a up trend. The previous long signal in CHA has not been profitable for investors in general. If you are invested in CHA at current levels please make sure that your allocation is limited and that your portfolio is well diversified.

Trend

CHA has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 7 days, CHA underperformed the SP500 index on 51% days.

During the last three months CHA was mostly profitable and delivered on average +0.07% per day. It's best return during this period (of +4.13%) was on Thursday, 15 Nov, 2018. While it's worst loss in the same period (of -5.08%) was on Monday, 29 Oct, 2018. There was initially a bullish trend during this period which started on 25 Sep, 2018 and went on till 2 Oct, 2018. The bullish trend returned +5.32% to investors. This was followed by a bearish trend that started on 3 Dec, 2018 and ended on 10 Dec, 2018. This bearish trend lost -7.04% of investor capital.

On monthly basis, CHA delivered profits in more months over the last year, than losses. CHA delivered profits less regularly than SP500 index. CHA significantly outperformed SP500 index in Nov 2018, when it returned +15.15% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CHA 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 CHA and SP500 index significantly outperform during months when quarterly/annual results are announced.

No wealth can ever make a bad man at peace with himself.
-- Plato

CHA 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 CHA's volatility from 13 Sep, 2018 to 29 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 CHA 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.

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

Based on your interest in CHA you may find it interesting to know that NFEC and NIHD have both shown remarkable performance this year and deserve to be on every investors' watchlist.

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