56.69 +0.34 (+0.6%) Sell

Joy for EDU investors as it ranks better than it's peers but, has not managed to breakout

13 min read

EDU ranked among the best performers today. On a longer term basis, investors in NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. (Foreign) made -0.07% per day. Friday's performance of +0.6% was a outperformance compared to it's daily average.

[Themes containing EDU]

Buy-and-Hold investors in EDU experienced a maximum drawdown of -32.28% over the last three months. It delivered -17.55% during this strong bearish trending period. There were no long signals during this period, where the short signal generated good profits of +17.55% for investors.


EDU has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 7 Jan, 2016 to 12 Jun, 2018. Over the last 2 years 11 months and 10 days, EDU outperformed the SP500 index on 51% days.

During the last three months EDU was mostly loss making and delivered on average -0.23% per day. It's best return during this period (of +6.79%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -16.06%) was on Tuesday, 23 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 1 Oct, 2018 and ended on 8 Oct, 2018. This bearish trend lost -19.25% of investor capital.

The last 12 months saw EDU's investors making profits in 2 months and incurring losses in 10 months. EDU was less consistent in delivering monthly returs than SP500 index. EDU was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -17.64% compared to -7.28% returned by SP500 index in Oct 2018. EDU had a longer winning streak of losing months than SP500 index. It went down in 7 straight months (from Jun 2018 to Dec 2018) during which period it delivered -48.98%.

One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.
-- William A. Feather

EDU 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 EDU's volatility from 17 Sep, 2018 to 26 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that EDU has significant positive skewness in it's return distribution. This indicates that investors can expect EDU to recover from drawdowns quickly. Which makes EDU 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 EDU. Therefore, SP500 must receive a lower allocation than EDU in your portfolio. SP500 index usually has shorter drawdown period than EDU.

Based on your interest in EDU you may find it interesting to know that LDOS, UVE and CCJ have all performed similar to EDU and qualify as alternative investment candidates that must be evaluated for diversification.

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