55.59 -2.45 (-4.4%) Sell

Don't invest in INXN now, it is a volatile investment

13 min read

INTERXION HOLDING N.V. (Foreign) delivered massive losses on Monday. It returned -4.4% to close at 55.59. It is currently trading -19% below it's 52 week high of 68.75.

[Themes containing INXN]

INXN showed a strong down trend over the last 3 months. During this period INXN returned -18.29% and saw a maximum drawdown of -19.14%. There were 2 short signals during this period that returned a cumulative of +11.6% to investors.


INXN has been underperforming the SP500 index in recent time, after having outperformed till 3 May, 2018. Over the last 2 years 11 months and 10 days, INXN outperformed the SP500 index on 55% days.

During the last three months INXN was mostly loss making and delivered on average -0.31% per day. It's best return during this period (of +3.54%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -4.91%) was on Tuesday, 20 Nov, 2018. There was initially a bearish trend during this period which started on 2 Oct, 2018 and went on till 11 Oct, 2018. The trend delivered -11.41% losses to investors. This was followed by a bullish trend that started on 21 Nov, 2018 and ended on 3 Dec, 2018. This bullish trend delivered +6.31% to investors.

On monthly basis, INXN delivered profits in more months over the last year, than losses. INXN delivered profits less regularly than SP500 index. INXN was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -12.97% compared to -7.28% returned by SP500 index in Oct 2018. INXN 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 INXN and SP500 index significantly outperform during months when quarterly/annual results are announced.

It's how you deal with failure that determines how you achieve success.
-- David Feherty

INXN 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 INXN's volatility from 1 Oct, 2018 to 20 Nov, 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 INXN 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.

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

Based on your interest in INXN you may find it interesting to know that DFBG and TPNL have both shown remarkable performance this year and deserve to be on every investors' watchlist.

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