67.34 +0.09 (+0.13%) Sell

H shows sign of weakness as investors do cost averaging

13 min read

HYATT HOTELS CORP performed better than the broader market today. It returned +0.13% to close at 67.34. It's recent 5 day performance has been -0.25%, -1.93%, -0.98%, -2.49% and +1.64%.

[Themes containing H]

H showed a strong down trend over the last 3 months. During this period H lost -12.87% and saw a maximum drawdown of -19.25%. There was a short signal during this period which returned +12.99%.


H has been underperforming the SP500 index in recent time, after having outperformed till 1 Jun, 2018. Over the last 2 years 11 months and 9 days, H outperformed the SP500 index on 53% days.

During the last three months H was mostly loss making and delivered on average -0.2% per day. It's best return during this period (of +4.19%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -5.06%) was on Wednesday, 10 Oct, 2018. There was initially a bearish trend during this period which started on 28 Sep, 2018 and went on till 5 Oct, 2018. The trend delivered -6.62% losses to investors. This was followed by a bullish trend that started on 13 Nov, 2018 and ended on 16 Nov, 2018. This bullish trend delivered +3.74% to investors.

H had 6 profitable and 6 loss making months over the last year. During the last year, H underperformed SP500 index on monthly return basis. H was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -12.33% compared to -7.28% returned by SP500 index in Oct 2018. H had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both H and SP500 index significantly outperform during months when quarterly/annual results are announced.

Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.
-- Charles Dickens

H 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 H's volatility from 14 Sep, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that H 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.

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

Based on your interest in H you may find it interesting to know that BURL, HQY and ZBRA are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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