GENOMIC HEALTH INC

72.74 +1.16 (+1.59%) Buy

Joy for GHDX investors as it outperforms

13 min read

GENOMIC HEALTH INC outperformed today. It surged by +1.59% to close at 72.74. During the last week it delivered -3.66% and saw a maximum drawdown of -5.17% before bouncing back.

[Themes containing GHDX]

GHDX is currently in a bullish trend. Over the last three months 2 bullish signals in GHDX have generated a profit of +0.6% for investors.

Trend

GHDX has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 13 Dec, 2017 to 7 Nov, 2018. Over the last 2 years 11 months and 8 days, GHDX outperformed the SP500 index on 51% days.

GHDX returned losses on 56% days in the last three months. During this time, it delivered on average +0.25% per day. It delivered it's best daily return of +27.39%, during this period, on Wednesday, 7 Nov, 2018. The longest stort-term trend during this period was 5 losing days, which started on 8 Nov, 2018 and ended on 14 Nov, 2018. This bearish trend lost -17.04% of investor capital.

The last 12 months saw GHDX's investors making profits in 8 months and incurring losses in 4 months. During the last year, GHDX and SP500 index had the same number of profitable months. GHDX significantly outperformed SP500 index in Jun 2018, when it returned +26.25% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. GHDX had a longer winning streak of profitable months than SP500 index. It went up in 8 straight months (from Apr 2018 to Nov 2018) during which period it delivered +103.6%.

Stock market bubbles don't grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception.
-- George Soros

GHDX is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in GHDX's volatility from 14 Sep, 2018 to 7 Nov, 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 GHDX has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

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

Based on your interest in GHDX you may find it interesting to know that LULU and AMD are both mid caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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