CONSOLIDATED EDISON INC ranked among the best performers today. It delivered +1.02% to close at 82.46. During the last week it delivered +2.63% and saw a maximum drawdown of -0.44% before bouncing back.
Buy-and-Hold investors in ED experienced a maximum drawdown of -7.85% over the last three months. It delivered +2.38% 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.
ED has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 27 Jun, 2016 to 26 Sep, 2018. Over the last 2 years 11 months and 3 days, ED underperformed the SP500 index on 47% days. Which indicates that on days ED underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
During the last three months ED was mostly profitable and delivered on average +0.04% per day. It's best return during this period (of +2.53%) was on Wednesday, 24 Oct, 2018. While it's worst loss in the same period (of -3.63%) was on Thursday, 15 Nov, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 15 Oct, 2018 and went on till 19 Oct, 2018. This bullish trend returned +2.84% to investors.
During the last year ED had 7 profitable months and 5 loss making months. ED returned profits in fewer months than SP500 index. ED was also a less risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -6.81% compared to -7.28% returned by SP500 index in Oct 2018. ED had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.
I'd like to live as a poor man with lots of money.
-- Pablo Picasso
ED 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 ED's volatility from 12 Sep, 2018 to 26 Oct, 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 ED has significant positive skewness in it's return distribution. This indicates that investors can expect ED to recover from drawdowns quickly. Which makes ED a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Investors trading in ED derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.
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