18.55 -0.1 (-0.54%) Buy

Waiting to invest in DM? Look for alternatives because it delivered lacklustre performance

13 min read

DM is a falling knife that can bleed you if you catch it today. On a longer term basis, investors in DOMINION ENERGY MIDSTREAM PARTNERS, LP made -0.0% per day. Tuesday's performance of -0.54% was a underperformance compared to it's daily average.

[Themes containing DM]

DM showed a bullish trend over the last 3 months. During this period DM increased by +2.77% and saw a maximum drawdown of -7.93%. There was a long signal during this period which returned +3.32%.


DM has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 17 Mar, 2016 to 15 Jun, 2018. Over the last 2 years 11 months and 14 days, DM underperformed the SP500 index on 51% days.

During the last three months DM was mostly profitable and delivered on average +0.05% per day. It's best return during this period (of +1.69%) was on Friday, 19 Oct, 2018. While it's worst loss in the same period (of -3.67%) was on Monday, 17 Dec, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 29 Nov, 2018 and went on till 11 Dec, 2018. This bullish trend returned +5.37% to investors.

The last 12 months saw DM's investors making profits in 6 months and incurring losses in 6 months. DM was less consistent in delivering monthly returs than SP500 index. DM was also a more risky investment than SP500 index as it's worst month in the last year, Mar 2018, returned -39.09% compared to -7.75% returned by SP500 index in Dec 2018. DM and SP500 index, both had periods of 6 consecutive profitable months.

"The way to become rich is to put all your eggs in one basket and then watch that basket.

DM 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 fall in DM's volatility from 2 Nov, 2018 to 29 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 DM 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 DM. Therefore, SP500 must receive a lower allocation than DM in your portfolio. SP500 index usually has shorter drawdown period than DM.

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

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