ALPHABET INC. significantly underperformed on Tuesday. It returned -2.59% to close at 1078.63. On a day when the overall market breadth was 35%, it closed higher than 6% of the market. In comparison, the benchmark SP500 index closed today at -0.0142%.
GOOGL showed a down trend over the last 3 months. During this period GOOGL returned -3.25% and saw a maximum drawdown of -11.8%. There was a short signal during this period which returned +3.25%.
GOOGL returned losses on 55% days in the last three months. During this time, it delivered on average -0.03% per day. It delivered it's best daily return of +6.42%, during this period, on Wednesday, 26 Dec, 2018. There was initially a bearish trend during this period which started on 8 Nov, 2018 and went on till 13 Nov, 2018. The trend delivered -5.54% losses to investors. This was followed by a bullish trend that started on 28 Nov, 2018 and ended on 3 Dec, 2018. This bullish trend delivered +5.99% to investors.
On monthly basis, GOOGL delivered profits in more months over the last year, than losses. GOOGL delivered profits less regularly than SP500 index. GOOGL was also a less risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -9.76% compared to -9.94% returned by SP500 index in Dec 2018. GOOGL had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year. It is interesting to note that both GOOGL and SP500 index significantly outperform during months when quarterly/annual results are announced.
"Cash combined with courage in a time of crisis is priceless.
GOOGL is becoming less volatile overall. In comparison, the SP500 index is seeing a fall in volatility. During the last three months, there was a significant fall in GOOGL's volatility from 29 Oct, 2018 to 18 Jan, 2019. While there was a significant surge in the SP500 index's volatility from 27 Nov, 2018 to 27 Dec, 2018.
Advanced/professional short-term investors should note that GOOGL 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.
Investors trading in GOOGL derivatives at this moment can consider 'Long Strangle' options strategy to receive better risk-adjusted returns.
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