12.95 +0.03 (+0.23%) Buy

Joy for CNX investors as it performed better than the broader market

13 min read

CNX RESOURCES CORP showed marginal outperformance today. It increased by +0.23% to close at 12.95. During the last week it delivered -4.99% and saw a maximum drawdown of -5.21% before bouncing back.

[Themes containing CNX]

CNX is currently in a bullish trend. Over the last three months Buy-and-Hold has been a better strategy (returning -11.6%) for CNX's investors than trading long signals.


CNX has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 15 Jan, 2016 to 7 Dec, 2016. Over the last 2 years 11 months and 7 days, CNX outperformed the SP500 index on 51% days.

During the last three months CNX was mostly loss making and delivered on average -0.16% per day. It's best return during this period (of +9.67%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -6.51%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 5 losing days, which started on 20 Sep, 2018 and ended on 26 Sep, 2018. This bearish trend lost -6.06% of investor capital.

The last 12 months saw CNX's investors making profits in 5 months and incurring losses in 7 months. CNX was less consistent in delivering monthly returs than SP500 index. CNX significantly outperformed SP500 index in Feb 2018, when it returned +14.7% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CNX 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 CNX and SP500 index significantly outperform during months when quarterly/annual results are announced.

I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.
-- Warren Buffett

CNX 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 CNX's volatility from 14 Sep, 2018 to 31 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 CNX 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 CNX. Therefore, SP500 must receive a lower allocation than CNX in your portfolio. SP500 index usually has shorter drawdown period than CNX.

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

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