INTC continues to mint money for it's investors
18 Dec, 201813 min read
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INTC delivered stellar performance today. On a longer term basis, investors in INTEL CORP made -0.04% per day. Tuesday's performance of +1.4% was a significant outperformance compared to it's daily average.
Buy-and-Hold investors in INTC experienced a maximum drawdown of -13.0% over the last three months. It gained +3.45% during this up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.
INTC has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 14 days, INTC outperformed the SP500 index on 54% days.
INTC returned losses on 53% days in the last three months. During this time, it delivered on average +0.08% per day. It delivered it's best daily return of +5.2%, during this period, on Tuesday, 30 Oct, 2018. There was initially a bearish trend during this period which started on 19 Nov, 2018 and went on till 23 Nov, 2018. The trend delivered -4.77% losses to investors. This was followed by a bullish trend that started on 10 Dec, 2018 and ended on 13 Dec, 2018. This bullish trend delivered +4.37% to investors.
INTC had 8 profitable and 4 loss making months over the last year. During the last year, number of profitable months of INTC and SP500 index were the same. INTC was also a more risky investment than SP500 index as it's worst month in the last year, Jun 2018, returned -9.95% compared to -7.75% returned by SP500 index in Dec 2018. INTC 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 INTC and SP500 index significantly outperform during months when quarterly/annual results are announced.
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INTC is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in INTC's volatility from 19 Sep, 2018 to 30 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that INTC 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 INTC derivatives at this moment can consider 'Long Straddle' options strategy to receive better risk-adjusted returns.
SP500 index has more chance of extreme outcomes than INTC. Therefore, SP500 must receive a lower allocation than INTC in your portfolio. SP500 index usually has shorter drawdown period than INTC.
On a general note (since you are interested in INTC), if you are evaluating INTC as an investment candidate, then you should read about WFC which has delivered similar performance and can help diversify your portfolio.
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