104.62 -1.16 (-1.11%) Buy

Looking to invest in FIS? Look for alternatives because it underperformed broader market

13 min read

FIDELITY NATIONAL INFORMATION SERVICES, INC. has destroyed investor wealth on Friday. It fell by -1.11% to close at 104.62. It is currently trading +12% above it's 52 week low of 92.74 and is down only -5% from it's 52 week high.

[Themes containing FIS]

FIS showed a bearish trend over the last 3 months. During this period FIS fell by -3.77% and saw a maximum drawdown of -10.35%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in FIS till volatility reduces and a clear trend emerges.


FIS has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 6 Jan, 2016 to 16 Nov, 2018. Over the last 2 years 11 months and 3 days, FIS outperformed the SP500 index on 54% days.

During the last three months FIS was mostly loss making and delivered on average -0.05% per day. It's best return during this period (of +4.53%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -4.62%) was on Wednesday, 10 Oct, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 10 Sep, 2018 and went on till 14 Sep, 2018. This bullish trend returned +1.27% to investors.

During the last year FIS had 7 profitable months and 5 loss making months. FIS returned profits in fewer months than SP500 index. FIS significantly outperformed SP500 index in Jan 2018, when it returned +9.24% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. FIS had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

What we really want to do is what we are really meant to do. When we do what we are meant to do, money comes to us, doors open for us, we feel useful, and the work we do feels like play to us.
-- Julia Cameron

FIS 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 FIS's volatility from 21 Sep, 2018 to 30 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that FIS has significant positive skewness in it's return distribution. This indicates that investors can expect FIS to recover from drawdowns quickly. Which makes FIS 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 FIS. Therefore, SP500 must receive a lower allocation than FIS in your portfolio. SP500 index usually has shorter drawdown period than FIS.

Based on your interest in FIS you may find it interesting to know that OPNT and EPIX are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).

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