262.28 +0.55 (+0.21%) Buy

ESS investors rewarded by market outperformance

13 min read

ESSEX PROPERTY TRUST INC delivered good returns on Friday. It grew by +0.21% to close at 262.28. It is currently trading +20% above it's 52 week low of 217.81 and is down only -1% from it's 52 week high.

[Themes containing ESS]

Buy-and-Hold investors in ESS experienced a maximum drawdown of -4.69% over the last three months. It grew by +6.51% during this up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.


ESS has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, ESS underperformed the SP500 index on 48% days. Which indicates that on days ESS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ESS was mostly profitable and delivered on average +0.11% per day. It's best return during this period (of +3.49%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -2.92%) was on Thursday, 11 Oct, 2018. There was initially a bearish trend during this period which started on 10 Oct, 2018 and went on till 12 Oct, 2018. The trend delivered -4.75% losses to investors. This was followed by a bullish trend that started on 16 Nov, 2018 and ended on 21 Nov, 2018. This bullish trend delivered +3.17% to investors.

ESS had 8 profitable and 4 loss making months over the last year. During the last year, number of profitable months of ESS and SP500 index were the same. ESS significantly outperformed SP500 index in Mar 2018, when it returned +7.53% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ESS and SP500 index, both had periods of 6 consecutive profitable months. It is interesting to note that both ESS and SP500 index significantly outperform during months when quarterly/annual results are announced.

It's pointless to set goals if you are not going to try to hit them.
-- Don Connelly

ESS 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 ESS's volatility from 18 Sep, 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 ESS has significant positive skewness in it's return distribution. This indicates that investors can expect ESS to recover from drawdowns quickly. Which makes ESS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

ESS has more chance of extreme outcomes than the SP500 index. Therefore, ESS must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than ESS.

On a general note (since you are interested in ESS), ABMD is a mid cap that deserves to be closely tracked for investment opportunities.

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