ENDURANCE INTERNATIONAL GROUP HOLDINGS, INC.

7.25 -0.6 (-8.23%) Sell

EIGI investors disappointed by market underperformance

13 min read

ENDURANCE INTERNATIONAL GROUP HOLDINGS, INC. was among the worst performers on Friday. It returned -8.23% to close at 7.25. On a day when the overall market breadth was 35%, it closed higher than 67% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing EIGI]

Buy-and-Hold investors in EIGI experienced a maximum drawdown of -26.92% over the last three months. It returned -22.04% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.

Trend

EIGI has been underperforming the SP500 index in recent time, after having outperformed till 2 Mar, 2016. Over the last 2 years 11 months and 10 days, EIGI underperformed the SP500 index on 48% days. Which indicates that on days EIGI underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months EIGI was mostly loss making and delivered on average -0.35% per day. It's best return during this period (of +12.35%) was on Friday, 26 Oct, 2018. While it's worst loss in the same period (of -8.39%) was on Wednesday, 7 Nov, 2018. There was initially a bullish trend during this period which started on 11 Oct, 2018 and went on till 16 Oct, 2018. The bullish trend returned +8.69% to investors. This was followed by a bearish trend that started on 2 Nov, 2018 and ended on 8 Nov, 2018. This bearish trend lost -14.99% of investor capital.

On monthly basis, EIGI delivered profits and losses in equal number of months. EIGI delivered profits less regularly than SP500 index. EIGI significantly outperformed SP500 index in May 2018, when it returned +21.77% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. EIGI had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year. It is interesting to note that both EIGI and SP500 index significantly outperform during months when quarterly/annual results are announced.

Wealth after all is a relative thing since he that has little and wants less is richer than he that has much and wants more.
-- Charles Caleb Colton

EIGI is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in EIGI's volatility from 28 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 EIGI has significant positive skewness in it's return distribution. This indicates that investors can expect EIGI to recover from drawdowns quickly. Which makes EIGI 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 EIGI. Therefore, SP500 must receive a lower allocation than EIGI in your portfolio. EIGI usually has shorter drawdown period than the SP500 index.

On a general note (since you are interested in EIGI), two instruments that deserve special mention are I and PRQR. They have significantly outperformed the overall market this year.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Following
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{detail.name}} {{detail.trend}} 
 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter