Search for alternative investments is on for DXCM investors as it shows weakness
11 Dec, 201813 min read
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DEXCOM INC delivered massive losses today. It fell by -0.34% to close at 123.03. It's recent 5 day performance has been +1.68%, -6.23%, +1.22%, -6.35% and +5.4%.
DXCM is currently in a bullish trend. The previous long signal in DXCM has not been profitable for investors in general. If you are invested in DXCM at current levels please make sure that your allocation is limited and that your portfolio is well diversified.
DXCM has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 27 Oct, 2017 to 9 Nov, 2018. Over the last 2 years 11 months and 7 days, DXCM outperformed the SP500 index on 52% days.
DXCM returned losses on 53% days in the last three months. During this time, it delivered on average -0.22% per day. It delivered it's worst daily return of -12.19%, during this period, on Monday, 19 Nov, 2018. The longest stort-term trend during this period was 5 losing days, which started on 28 Sep, 2018 and ended on 4 Oct, 2018. This bearish trend lost -13.75% of investor capital.
During the last year DXCM had 5 profitable months and 7 loss making months. DXCM returned profits in fewer months than SP500 index. DXCM significantly outperformed SP500 index in Aug 2018, when it returned +51.77% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. DXCM had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -9.14%.
It's not the employer who pays the wages. Employers only handle the money. It's the customer who pays the wages.
-- Henry Ford
DXCM 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 DXCM's volatility from 28 Sep, 2018 to 19 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 DXCM 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 DXCM. Therefore, SP500 must receive a lower allocation than DXCM in your portfolio. SP500 index usually has shorter drawdown period than DXCM.
On a general note (since you are interested in DXCM), if you are an investor in IMTE, you need to be extra careful (consider limiting your exposure or diversifying) as it is extremely unpredictable and therefore risky.
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