122.41 +1.61 (+1.32%) Sell

CXO investors hold onto their investments as it marginally outperforms

13 min read

CONCHO RESOURCES INC outperformed on Friday. It surged by +1.32% to close at 122.41. It is currently trading -24% below it's 52 week high of 161.66.

[Themes containing CXO]

CXO is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +11.53% for investors.


CXO has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 20 Jan, 2016 to 10 Oct, 2016. Over the last 2 years 11 months and 3 days, CXO outperformed the SP500 index on 51% days.

CXO was profitable on 52% days in the last three months. During this time, it delivered on average -0.1% per day. It delivered it's worst daily return of -6.31%, during this period, on Friday, 23 Nov, 2018. The longest stort-term trend during this period was 6 losing days, which started on 17 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -12.57% of investor capital.

The last 12 months saw CXO's investors making profits in 5 months and incurring losses in 7 months. CXO was less consistent in delivering monthly returs than SP500 index. CXO was also a more risky investment than SP500 index as it's worst month in the last year, May 2018, returned -12.66% compared to -7.28% returned by SP500 index in Oct 2018. CXO had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered -21.96%. It is interesting to note that both CXO and SP500 index significantly outperform during months when quarterly/annual results are announced.

It is not the man who has too little, but the man who craves more, that is poor.
-- Seneca

CXO 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 CXO's volatility from 10 Sep, 2018 to 12 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

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

Based on your interest in CXO you may find it interesting to know that CSCO, MSFT and V are large caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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