ENLINK MIDSTREAM, LLC

10.48 -0.31 (-2.96%) Sell

Stop-loss on the minds of ENLC investors as it was among the worst performers

13 min read

ENLINK MIDSTREAM, LLC has destroyed investor wealth today. It lost -2.96% to close at 10.48. During the last week it lost -7.26% and saw a maximum drawdown of -8.23% before bouncing back.

[Themes containing ENLC]

Buy-and-Hold investors in ENLC experienced a maximum drawdown of -39.7% over the last three months. It lost -37.43% 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. The net profit from Short signals was +33.5%.

Trend

ENLC has been underperforming the SP500 index in recent time, after having outperformed till 6 Jan, 2017. Over the last 2 years 11 months and 14 days, ENLC underperformed the SP500 index on 51% days.

During the last three months ENLC was mostly loss making and delivered on average -0.72% per day. It's best return during this period (of +5.69%) was on Monday, 3 Dec, 2018. While it's worst loss in the same period (of -5.84%) was on Tuesday, 23 Oct, 2018. There was initially a bullish trend during this period which started on 27 Sep, 2018 and went on till 1 Oct, 2018. The bullish trend returned +7.5% to investors. This was followed by a bearish trend that started on 22 Oct, 2018 and ended on 30 Oct, 2018. This bearish trend lost -20.75% of investor capital.

ENLC had 5 profitable and 7 loss making months over the last year. During the last year, ENLC underperformed SP500 index on monthly return basis. ENLC was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -25.2% compared to -7.75% returned by SP500 index in Dec 2018. ENLC had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered -45.59%. It is interesting to note that both ENLC and SP500 index significantly outperform during months when quarterly/annual results are announced.

Formal education will make you a living; self-education will make you a fortune.
-- Jim Rohn

ENLC 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 ENLC's volatility from 20 Sep, 2018 to 7 Nov, 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 ENLC 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 ENLC. Therefore, SP500 must receive a lower allocation than ENLC in your portfolio. SP500 index usually has shorter drawdown period than ENLC.

On a general note (since you are interested in ENLC), three mid cap instruments that deserve special mention are ABMD, RHT and EW. They have all outperformed the market and must be closely watched for investment opportunities.

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