Stop-loss on the minds of ENB investors as it ranked among the worst performers
14 Dec, 201813 min read
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ENBRIDGE INC ranked among the worst performers on Friday. It lost -0.99% to close at 31.95. On a day when the overall market breadth was 35%, it closed higher than 71% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.
Buy-and-Hold investors in ENB experienced a maximum drawdown of -11.93% over the last three months. It lost -6.8% during this 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. The net profit from Short signals was +0.16%.
ENB has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, ENB underperformed the SP500 index on 51% days.
During the last three months ENB was mostly loss making and delivered on average -0.1% per day. It's best return during this period (of +3.31%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -4.36%) was on Friday, 23 Nov, 2018. There was initially a bullish trend during this period which started on 1 Oct, 2018 and went on till 4 Oct, 2018. The bullish trend returned +4.92% to investors. This was followed by a bearish trend that started on 4 Dec, 2018 and ended on 10 Dec, 2018. This bearish trend lost -6.27% of investor capital.
ENB had 4 profitable and 8 loss making months over the last year. During the last year, ENB underperformed SP500 index on monthly return basis. ENB significantly outperformed SP500 index in Jun 2018, when it returned +14.87% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ENB had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Jan 2018 to Apr 2018) during which period it delivered -24.02%.
"Infinite growth of material consumption in a finite world is an impossibility.
ENB is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in ENB's volatility from 9 Oct, 2018 to 29 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 ENB has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.
SP500 index has more chance of extreme outcomes than ENB. Therefore, SP500 must receive a lower allocation than ENB in your portfolio. SP500 index usually has shorter drawdown period than ENB.
On a general note (since you are interested in ENB), NSPR has performed really well and deserves to be closely tracked for investment opportunities.
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