75.61 +0.84 (+1.11%) Buy

D investors rewarded by market outperformance

13 min read

DOMINION ENERGY INC ranked among the best performers today. It delivered +1.11% to close at 75.61. During the last week it delivered +1.49% and saw a maximum drawdown of -0.72% before bouncing back.

[Themes containing D]

Buy-and-Hold investors in D experienced a maximum drawdown of -5.8% over the last three months. It delivered +4.61% during this bullish trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.


D has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 6 Jul, 2016 to 6 Jun, 2018. Over the last 2 years 11 months and 3 days, D underperformed the SP500 index on 51% days.

During the last three months D was mostly profitable and delivered on average +0.08% per day. It's best return during this period (of +1.76%) was on Friday, 19 Oct, 2018. While it's worst loss in the same period (of -1.97%) was on Thursday, 25 Oct, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 5 Nov, 2018 and went on till 13 Nov, 2018. This bullish trend returned +5.78% to investors.

During the last year D had 5 profitable months and 7 loss making months. D returned profits in fewer months than SP500 index. D was also a more risky investment than SP500 index as it's worst month in the last year, Mar 2018, returned -8.96% compared to -7.28% returned by SP500 index in Oct 2018. D had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Jan 2018 to May 2018) during which period it delivered -21.19%. It is interesting to note that both D and SP500 index significantly outperform during months when quarterly/annual results are announced.

Outcome is simply the final score: Who won the game; what numbers came up in a roll of the dice; how high did a stock go. Outcome is the result, regardless of the method used to achieve it. It is not controllable.
-- Barry Ritholtz

D 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 D's volatility from 10 Sep, 2018 to 2 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 D has significant positive skewness in it's return distribution. This indicates that investors can expect D to recover from drawdowns quickly. Which makes D 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 D. Therefore, SP500 must receive a lower allocation than D in your portfolio. SP500 index usually has shorter drawdown period than D.

Based on your interest in D you may find it interesting to know that AMRN has shown remarkable performance this year and deserves to be on every investors' watchlist.

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