73.2 -2.45 (-3.34%) Sell

Don't even consider investing in EMN now, it is an investor's nightmare

13 min read

EASTMAN CHEMICAL CO is a falling knife that can bleed you if you catch it today. It delivered -3.34% to close at 73.2. It's recent 5 day performance has been -2.5%, -4.05%, +2.7%, -0.28% and -0.05%.

[Themes containing EMN]

EMN showed a strong bearish trend over the last 3 months. During this period EMN delivered -24.47% and saw a maximum drawdown of -26.71%. There was a short signal during this period which returned +24.47%.


EMN has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 18 May, 2018 to 7 Dec, 2018. One must note that EMN is currently at it's worst performance to the SP500 index which makes it a bad investment candidate. Over the last 2 years 11 months and 3 days, EMN underperformed the SP500 index on 47% days. Which indicates that on days EMN underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months EMN was mostly loss making and delivered on average -0.43% per day. It's best return during this period (of +4.25%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -5.62%) was on Friday, 5 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 17 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -10.45% of investor capital.

The last 12 months saw EMN's investors making profits in 6 months and incurring losses in 6 months. EMN was less consistent in delivering monthly returs than SP500 index. EMN was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -19.12% compared to -7.28% returned by SP500 index in Oct 2018. EMN had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both EMN and SP500 index significantly outperform during months when quarterly/annual results are announced.

Traditionally, the sample is always better than the stock you deliver to the store.
-- Calvin Klein

EMN 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 EMN's volatility from 17 Sep, 2018 to 30 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 EMN has significant positive skewness in it's return distribution. This indicates that investors can expect EMN to recover from drawdowns quickly. Which makes EMN a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in EMN you may find it interesting to know that AMD, TWTR and LULU are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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