135.86 -4.81 (-3.54%) Sell

Prayers for HCA investors as it was among the worst performers

13 min read

HCA HEALTHCARE, INC. was among the worst performers today. It delivered -3.54% to close at 135.86. During the last week it delivered -5.65% and saw a maximum drawdown of -7.13% before bouncing back.

[Themes containing HCA]

Buy-and-Hold investors in HCA experienced a maximum drawdown of -9.84% over the last three months. It increased by +3.32% during this bullish trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.


HCA has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 20 Nov, 2017 to 29 Nov, 2018. Over the last 2 years 11 months and 3 days, HCA outperformed the SP500 index on 52% days.

During the last three months HCA was mostly profitable and delivered on average +0.07% per day. It's best return during this period (of +4.81%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -3.66%) was on Monday, 19 Nov, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 20 Sep, 2018 and went on till 1 Oct, 2018. This bullish trend returned +6.18% to investors.

The last 12 months saw HCA's investors making profits in 7 months and incurring losses in 5 months. HCA was less consistent in delivering monthly returs than SP500 index. HCA significantly outperformed SP500 index in Jul 2018, when it returned +20.39% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. HCA had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both HCA and SP500 index significantly outperform during months when quarterly/annual results are announced.

How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.
-- Robert G. Allen

HCA 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 HCA'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 HCA 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 HCA derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in HCA you may find it interesting to know that TWTR is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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