Don't go profit booking on EQT now, it delivered a decent return
11 Dec, 201813 min read
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EQT delivered stellar performance today. On a longer term basis, investors in EQT CORP made +0.04% per day. Tuesday's performance of +3.31% was a significant outperformance compared to it's daily average.
EQT showed a strong down trend over the last 3 months. During this period EQT returned -57.56% and saw a maximum drawdown of -65.7%. There was a short signal during this period which returned +57.56%.
EQT has been underperforming the SP500 index in recent time, after having outperformed till 28 Jun, 2016. Over the last 2 years 11 months and 7 days, EQT underperformed the SP500 index on 52% days.
EQT returned losses on 55% days in the last three months. During this time, it delivered on average -1.06% per day. It delivered it's worst daily return of -46.42%, during this period, on Tuesday, 13 Nov, 2018. There was initially a bullish trend during this period which started on 2 Oct, 2018 and went on till 9 Oct, 2018. The bullish trend returned +5.22% to investors. This was followed by a bearish trend that started on 17 Oct, 2018 and ended on 29 Oct, 2018. This bearish trend lost -41.14% of investor capital.
On monthly basis, EQT delivered losses in more months over the last year, than profits. EQT delivered profits less regularly than SP500 index. EQT was also a more risky investment than SP500 index as it's worst month in the last year, Nov 2018, returned -44.92% compared to -7.28% returned by SP500 index in Oct 2018. EQT had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.
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EQT 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 EQT's volatility from 14 Sep, 2018 to 26 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that EQT has positive skewness in it's return distribution. This indicates that investors can expect EQT to make attempts to recover from drawdowns quickly. Which makes EQT a good candidate for momentum based trading on short-term bullish trends or counter-trends.
SP500 index has more chance of extreme outcomes than EQT. Therefore, SP500 must receive a lower allocation than EQT in your portfolio. EQT usually has shorter drawdown period than the SP500 index.
Based on your interest in EQT you may find it interesting to know that TACT has delivered similar performance as EQT and can be considered as an alternative investment candidate (to EQT).
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