309.42 -2.05 (-0.66%) Sell

Waiting to invest in CHTR? Avoid at the moment as it has destroyed investor wealth

13 min read

CHARTER COMMUNICATIONS, INC. has destroyed investor wealth today. It delivered -0.66% to close at 309.42. It's recent 5 day performance has been -1.67%, +1.36%, -0.98%, -0.02% and -3.39%.

[Themes containing CHTR]

CHTR showed a bearish trend over the last 3 months. During this period CHTR delivered -3.15% and saw a maximum drawdown of -11.3%. There was a short signal during this period which returned +0.23%.


CHTR has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 5 Jan, 2016 to 6 Sep, 2017. Over the last 2 years 11 months and 10 days, CHTR outperformed the SP500 index on 50% days. Which indicates that on days CHTR outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

During the last three months CHTR was mostly loss making and delivered on average -0.03% per day. It's best return during this period (of +5.11%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -6.29%) was on Friday, 26 Oct, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 21 Nov, 2018 and went on till 29 Nov, 2018. This bullish trend returned +8.07% to investors.

The last 12 months saw CHTR's investors making profits in 6 months and incurring losses in 6 months. CHTR was less consistent in delivering monthly returs than SP500 index. CHTR significantly outperformed SP500 index in Jun 2018, when it returned +12.32% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CHTR had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year. It is interesting to note that both CHTR and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Wealth consists not in having great possessions, but in having few wants.

CHTR is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in CHTR's volatility from 17 Sep, 2018 to 2 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that CHTR 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.

Investors trading in CHTR derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in CHTR you may find it interesting to know that HEAR, DFBG and I have all shown remarkable performance this year and deserve to be on every investor's watchlist.

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