13.75 +0.16 (+1.18%) Buy

KEP continues to mint money for it's investors

13 min read

KOREA ELECTRIC POWER CORP (Foreign) ranked among the best performers on Friday. It delivered +1.18% to close at 13.75. It is currently trading -24% below it's 52 week high of 18.22.

[Themes containing KEP]

KEP showed a bullish trend over the last 3 months. During this period KEP delivered +4.09% and saw a maximum drawdown of -21.73%. There was a long signal during this period which returned +9.04%.


KEP has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 10 Aug, 2016 to 8 Oct, 2018. Over the last 2 years 11 months and 3 days, KEP underperformed the SP500 index on 51% days.

During the last three months KEP was mostly profitable and delivered on average +0.09% per day. It's best return during this period (of +5.48%) was on Monday, 26 Nov, 2018. While it's worst loss in the same period (of -6.22%) was on Wednesday, 10 Oct, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 12 Oct, 2018 and went on till 22 Oct, 2018. This bullish trend returned +12.67% to investors.

The last 12 months saw KEP's investors making profits in 5 months and incurring losses in 7 months. KEP was less consistent in delivering monthly returs than SP500 index. KEP was also a more risky investment than SP500 index as it's worst month in the last year, May 2018, returned -12.59% compared to -7.28% returned by SP500 index in Oct 2018. KEP had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -18.94%. It is interesting to note that both KEP and SP500 index significantly outperform during months when quarterly/annual results are announced.

The art and culture that is New York, communications, finance, all these things help make up New York. The rest of the country should be happy that we are what we are.
-- David Dinkins

KEP 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 KEP's volatility from 2 Oct, 2018 to 14 Nov, 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 KEP has significant positive skewness in it's return distribution. This indicates that investors can expect KEP to recover from drawdowns quickly. Which makes KEP a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

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

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{detail.name}} {{detail.trend}} 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter