14.41 -0.03 (-0.21%) Sell

Stop-loss on the minds of DLPH investors as it destroyed investor wealth

13 min read

DELPHI TECHNOLOGIES PLC has destroyed investor wealth today. It lost -0.21% to close at 14.41. During the last week it lost -6.0% and saw a maximum drawdown of -6.0%.

[Themes containing DLPH]

Buy-and-Hold investors in DLPH experienced a maximum drawdown of -59.74% over the last three months. It lost -58.65% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +58.65% for investors.


DLPH has been outperforming the SP500 index in recent time. Over the last 1 year and 13 days, DLPH underperformed the SP500 index on 60% days.

During the last three months DLPH was mostly loss making and delivered on average -1.33% per day. It's best return during this period (of +5.13%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -12.89%) was on Friday, 5 Oct, 2018. There was initially a bearish trend during this period which started on 21 Sep, 2018 and went on till 5 Oct, 2018. The trend delivered -30.8% losses to investors. This was followed by a bullish trend that started on 25 Oct, 2018 and ended on 29 Oct, 2018. This bullish trend delivered +9.96% to investors.

DLPH had 4 profitable and 8 loss making months over the last year. During the last year, DLPH underperformed SP500 index on monthly return basis. DLPH was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -31.44% compared to -7.75% returned by SP500 index in Dec 2018. DLPH had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Aug 2018 to Dec 2018) during which period it delivered -100.4%. It is interesting to note that both DLPH and SP500 index significantly outperform during months when quarterly/annual results are announced.

"There are two kinds of investors, be they large or small: those who don't know where the market is headed, and those who don't know that they don't know. Then again, there is a third type of investor -the investment professional, who indeed knows that he or she doesn't know, but whose livelihood depends upon appearing to know.

DLPH is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in DLPH's volatility from 2 Oct, 2018 to 30 Oct, 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 DLPH has positive skewness in it's return distribution. This indicates that investors can expect DLPH to make attempts to recover from drawdowns quickly. Which makes DLPH a good candidate for momentum based trading on short-term bullish trends or counter-trends.

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

On a general note (since you are interested in DLPH), three instruments that deserve special mention are NFEC, DFBG and ECYT. They have all outperformed the market and must be closely watched for investment opportunities.

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