97.24 +0.06 (+0.06%) Sell

Joy for EFX investors as it performed better than the broader market

13 min read

EFX outperformed today. On a longer term basis, investors in EQUIFAX INC made -0.03% per day. Monday's performance of +0.06% was a outperformance compared to it's daily average.

[Themes containing EFX]

Buy-and-Hold investors in EFX experienced a maximum drawdown of -28.07% over the last three months. It delivered -27.61% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +26.27%.


EFX has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 25 Jul, 2016 to 8 Nov, 2018. Over the last 2 years 11 months and 10 days, EFX underperformed the SP500 index on 43% days. Which indicates that on days EFX underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

EFX returned losses on 57% days in the last three months. During this time, it delivered on average -0.49% per day. It delivered it's worst daily return of -14.78%, during this period, on Thursday, 25 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 20 Sep, 2018 and ended on 27 Sep, 2018. This bearish trend lost -2.96% of investor capital.

The last 12 months saw EFX's investors making profits in 7 months and incurring losses in 5 months. EFX was less consistent in delivering monthly returs than SP500 index. EFX was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -22.44% compared to -7.28% returned by SP500 index in Oct 2018. EFX had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

"Financial crises are like fireworks: they illuminate the sky even as they go pop.

EFX is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in EFX's volatility from 1 Oct, 2018 to 25 Oct, 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 EFX has significant positive skewness in it's return distribution. This indicates that investors can expect EFX to recover from drawdowns quickly. Which makes EFX a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in EFX derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.

SP500 index has more chance of extreme outcomes than EFX. Therefore, SP500 must receive a lower allocation than EFX in your portfolio. EFX usually has shorter drawdown period than the SP500 index.

On a general note (since you are interested in EFX), three instruments that deserve special mention are NFEC, DFBG and TNDM. They have all outperformed the market and must be closely watched for investment opportunities.

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