HQY investors hurt by serious losses

HEALTHEQUITY INC was among the worst performers today. It fell by -5.52% to close at 62.09. During the last week it fell by -8.25% and saw a maximum drawdown of -10.91% before bouncing back.

[Themes containing HQY]

HQY is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +27.14% for investors.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

HQY has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 5 Feb, 2016 to 7 Nov, 2018. Over the last 2 years 11 months and 10 days, HQY outperformed the SP500 index on 56% days.

During the last three months HQY was mostly loss making and delivered on average -0.55% per day. It's best return during this period (of +5.78%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -11.45%) was on Thursday, 6 Dec, 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 -17.02% of investor capital.

During the last year HQY had 8 profitable months and 4 loss making months. Profitable number of months of HQY and SP500 index were the same. HQY was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -29.99% compared to -7.28% returned by SP500 index in Oct 2018. HQY and SP500 index, both had periods of 6 consecutive profitable months. It is interesting to note that both HQY and SP500 index significantly outperform during months when quarterly/annual results are announced.

Many people take no care of their money till they come nearly to the end of it, and others do just the same with their time.
-- Johann Wolfgang von Goethe

HQY 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 HQY's volatility from 27 Sep, 2018 to 7 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

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

Based on your interest in HQY you may find it interesting to know that LNG has delivered similar performance as HQY and can be considered as an alternative investment candidate (to HQY).