AMDOCS LTD (FOREIGN)

60.01 -0.05 (-0.08%) Sell

DOX investors dump it

13 min read

AMDOCS LTD (Foreign) was among the worst performers today. It fell by -0.08% to close at 60.01. It's recent 5 day performance has been +0.03%, +0.7%, 0.0%, +1.12% and +3.62%.

[Themes containing DOX]

DOX is currently in a bearish trend. Over the last three months 3 bearish signals have generated a profit of +2.24% for investors.

Trend

DOX has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 18 Feb, 2016 to 9 Oct, 2018. Over the last 2 years 11 months and 9 days, DOX underperformed the SP500 index on 48% days. Which indicates that on days DOX underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months DOX was mostly loss making and delivered on average -0.15% per day. It's best return during this period (of +3.81%) was on Friday, 9 Nov, 2018. While it's worst loss in the same period (of -3.49%) was on Friday, 7 Dec, 2018. The longest stort-term trend during this period was 6 losing days, which started on 4 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -6.81% of investor capital.

During the last year DOX had 7 profitable months and 5 loss making months. DOX returned profits in fewer months than SP500 index. DOX was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -7.55% compared to -7.28% returned by SP500 index in Oct 2018. DOX 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 DOX and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Buy not on optimism, but on arithmetic.

DOX 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 DOX's volatility from 14 Sep, 2018 to 9 Nov, 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 DOX has significant positive skewness in it's return distribution. This indicates that investors can expect DOX to recover from drawdowns quickly. Which makes DOX 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 DOX. Therefore, SP500 must receive a lower allocation than DOX in your portfolio. SP500 index usually has shorter drawdown period than DOX.

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

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