18.87 -0.42 (-2.23%) Sell

Doubt in the minds of HUN investors as it destroyed investor wealth

13 min read

HUNTSMAN CORP was among the worst performers today. It fell by -2.23% to close at 18.87. It's recent 5 day performance has been +0.78%, +2.3%, +2.97%, -4.97% and -2.15%.

[Themes containing HUN]

HUN is currently in a bearish trend. The current bearish signal has generated a profit of +33.35% for investors in the last three months.


HUN has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 25 Jan, 2016 to 5 Jan, 2018. Over the last 2 years 11 months and 9 days, HUN outperformed the SP500 index on 51% days.

During the last three months HUN was mostly loss making and delivered on average -0.61% per day. It's best return during this period (of +6.4%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -7.01%) was on Tuesday, 9 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 4 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -14.33% of investor capital.

During the last year HUN had 4 profitable months and 8 loss making months. HUN returned profits in fewer months than SP500 index. HUN was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -19.47% compared to -7.28% returned by SP500 index in Oct 2018. HUN had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Aug 2018 to Dec 2018) during which period it delivered -53.5%. It is interesting to note that both HUN and SP500 index significantly outperform during months when quarterly/annual results are announced.

"I finally know what distinguishes man from the other beasts: financial worries.

HUN 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 HUN's volatility from 25 Sep, 2018 to 30 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 HUN has significant positive skewness in it's return distribution. This indicates that investors can expect HUN to recover from drawdowns quickly. Which makes HUN 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 HUN. Therefore, SP500 must receive a lower allocation than HUN in your portfolio. HUN usually has shorter drawdown period than the SP500 index.

On a general note (since you are interested in HUN), three large cap instruments that deserve special mention are UNH, CSCO and AMZN. They have all outperformed the market and must be closely watched for investment opportunities.

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