8.87 +0.01 (+0.11%) Buy

Joy for ERIC investors as it ranks better than it's peers but, has not managed to breakout

13 min read

ERICSSON LM TELEPHONE CO (Foreign) showed marginal outperformance today. It increased by +0.11% to close at 8.87. It's recent 5 day performance has been -1.34%, -2.39%, +0.33%, +4.32% and +0.11%.

[Themes containing ERIC]

ERIC is currently in a bullish trend. The current bullish signal has generated a profit of +1.49% for ERIC's investors in the last three months.


ERIC has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 26 Jan, 2016 to 31 Jan, 2018. Over the last 2 years 11 months and 14 days, ERIC underperformed the SP500 index on 50% days. Which indicates that on days ERIC underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ERIC was mostly profitable and delivered on average +0.05% per day. It's best return during this period (of +5.26%) was on Thursday, 18 Oct, 2018. While it's worst loss in the same period (of -4.93%) was on Wednesday, 14 Nov, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 29 Oct, 2018 and went on till 7 Nov, 2018. This bullish trend returned +7.18% to investors.

During the last year ERIC had 7 profitable months and 5 loss making months. ERIC returned profits in fewer months than SP500 index. ERIC significantly outperformed SP500 index in Apr 2018, when it returned +21.97% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ERIC had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

"There can be no rise in the value of labour without a fall of profits.

ERIC 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 ERIC's volatility from 27 Sep, 2018 to 12 Dec, 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 ERIC has significant positive skewness in it's return distribution. This indicates that investors can expect ERIC to recover from drawdowns quickly. Which makes ERIC 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 ERIC. Therefore, SP500 must receive a lower allocation than ERIC in your portfolio. ERIC usually has shorter drawdown period than the SP500 index.

Based on your interest in ERIC you may find it interesting to know that GWR has delivered similar performance as ERIC and can be considered as an alternative investment candidate (to ERIC).

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