CONDUENT INC

10.98 -0.11 (-0.99%) Sell

CNDT investors disappointed by market underperformance

13 min read

CONDUENT INC ranked among the worst performers on Monday. It returned -0.99% to close at 10.98. On a day when the overall market breadth was 34%, it closed higher than 14% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing CNDT]

Buy-and-Hold investors in CNDT experienced a maximum drawdown of -51.44% over the last three months. It returned -51.42% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +51.42% for investors.

Trend

CNDT has been underperforming the SP500 index in recent time, after having outperformed till 14 Sep, 2018. Over the last 1 year 11 months and 11 days, CNDT underperformed the SP500 index on 48% days. Which indicates that on days CNDT underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months CNDT was mostly loss making and delivered on average -1.06% per day. It's best return during this period (of +6.21%) was on Monday, 12 Nov, 2018. While it's worst loss in the same period (of -29.14%) was on Wednesday, 7 Nov, 2018. There was initially a bearish trend during this period which started on 17 Oct, 2018 and went on till 24 Oct, 2018. The trend delivered -7.23% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 1 Nov, 2018. This bullish trend delivered +3.5% to investors.

On monthly basis, CNDT delivered losses in more months over the last year, than profits. CNDT delivered profits less regularly than SP500 index. CNDT was also a more risky investment than SP500 index as it's worst month in the last year, Nov 2018, returned -32.88% compared to -7.28% returned by SP500 index in Oct 2018. CNDT had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -62.56%. It is interesting to note that both CNDT and SP500 index significantly outperform during months when quarterly/annual results are announced.

I owe my success to having listened respectfully to the very best advice, and then going away and doing the exact opposite.
-- G. K. Chesterton

CNDT 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 CNDT's volatility from 25 Sep, 2018 to 7 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that CNDT has significant positive skewness in it's return distribution. This indicates that investors can expect CNDT to recover from drawdowns quickly. Which makes CNDT 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 CNDT. Therefore, SP500 must receive a lower allocation than CNDT in your portfolio. CNDT usually has shorter drawdown period than the SP500 index.

Based on your interest in CNDT you may find it interesting to know that RHT, SQ and AMD are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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