73.76 +1.0 (+1.36%) Sell

ENTA does a dead cat bounce, it's still too early to buy into it

13 min read

ENANTA PHARMACEUTICALS INC delivered stellar performance today. It gained +1.36% to close at 73.76. It's recent 5 day performance has been -2.67%, +1.0%, -1.29%, +2.7% and -1.91%.

[Themes containing ENTA]

ENTA showed a strong down trend over the last 3 months. During this period ENTA lost -19.6% and saw a maximum drawdown of -25.97%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in ENTA till volatility reduces and a clear trend emerges.


ENTA has been underperforming the SP500 index in recent time, after having outperformed till 6 Jul, 2018. Over the last 2 years 11 months and 10 days, ENTA outperformed the SP500 index on 53% days.

ENTA returned losses on 51% days in the last three months. During this time, it delivered on average -0.29% per day. It delivered it's worst daily return of -7.61%, during this period, on Thursday, 8 Nov, 2018. There was initially a bearish trend during this period which started on 28 Sep, 2018 and went on till 2 Oct, 2018. The trend delivered -12.03% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 2 Nov, 2018. This bullish trend delivered +9.98% to investors.

ENTA had 6 profitable and 6 loss making months over the last year. During the last year, ENTA underperformed SP500 index on monthly return basis. ENTA significantly outperformed SP500 index in Jan 2018, when it returned +46.54% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ENTA 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 ENTA and SP500 index significantly outperform during months when quarterly/annual results are announced.

An investment in knowledge pays the best interest.
-- Benjamin Franklin

ENTA 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 ENTA's volatility from 17 Sep, 2018 to 25 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 ENTA has significant positive skewness in it's return distribution. This indicates that investors can expect ENTA to recover from drawdowns quickly. Which makes ENTA 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 ENTA. Therefore, SP500 must receive a lower allocation than ENTA in your portfolio. ENTA usually has shorter drawdown period than the SP500 index.

On a general note (since you are interested in ENTA), NSPR has performed really well and deserves to be closely tracked for investment opportunities.

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
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