Sun shines over EIX investors as it was among the best performers
14 Dec, 201813 min read
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EDISON INTERNATIONAL outperformed the broader market on Friday. It increased by +0.18% to close at 59.64. It is currently trading +26% above it's 52 week low of 47.19 and is down only -15% from it's 52 week high.
EIX is currently in a bullish trend. Over the last three months 3 bullish signals in EIX have generated a profit of +1.7% for investors.
EIX has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 27 Jun, 2016 to 15 Nov, 2018. Over the last 2 years 11 months and 10 days, EIX underperformed the SP500 index on 48% days. Which indicates that on days EIX underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
During the last three months EIX delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +15.38%) was on Friday, 16 Nov, 2018. While it's worst loss in the same period (of -12.4%) was on Thursday, 15 Nov, 2018. The longest stort-term trends during this period were 4 profitable and losing days. The bullish trend (which returned +2.91%) started on 4 Oct, 2018 and went on till 9 Oct, 2018 while the bearish trend (which returned -2.5%) started on 24 Sep, 2018 and went on till 27 Sep, 2018.
During the last year EIX had 7 profitable months and 5 loss making months. EIX returned profits in fewer months than SP500 index. EIX was also a more risky investment than SP500 index as it's worst month in the last year, Nov 2018, returned -20.28% compared to -7.28% returned by SP500 index in Oct 2018. EIX had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both EIX and SP500 index significantly outperform during months when quarterly/annual results are announced.
Let him who would enjoy a good future waste none of his present.
-- Roger Babson
EIX 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 EIX's volatility from 17 Sep, 2018 to 12 Nov, 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 EIX has significant positive skewness in it's return distribution. This indicates that investors can expect EIX to recover from drawdowns quickly. Which makes EIX 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 EIX. Therefore, SP500 must receive a lower allocation than EIX in your portfolio. EIX usually has shorter drawdown period than the SP500 index.
Based on your interest in EIX you may find it interesting to know that SQ and AMD are both mid caps that have shown remarkable performance and deserve to be on every investors' watchlist.
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