Party time for KMB investors as it ranks among the best performers
13 Dec, 201813 min read
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KIMBERLY CLARK CORP delivered stellar performance on Thursday. It gained +3.93% to close at 118.4. It is currently trading +20% above it's 52 week low of 98.52 and is down only -4% from it's 52 week high.
KMB is currently in a up trend. The previous long signal in KMB has not been profitable for investors in general. If you are invested in KMB at current levels please make sure that your allocation is limited and that your portfolio is well diversified.
KMB has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 9 days, KMB underperformed the SP500 index on 49% days. Which indicates that on days KMB underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
KMB was profitable on 50% days in the last three months. During this time, it delivered on average +0.04% per day. It delivered it's worst daily return of -4.26%, during this period, on Thursday, 11 Oct, 2018. There was initially a bearish trend during this period which started on 21 Sep, 2018 and went on till 25 Sep, 2018. The trend delivered -3.68% losses to investors. This was followed by a bullish trend that started on 6 Dec, 2018 and ended on 11 Dec, 2018. This bullish trend delivered +2.87% to investors.
On monthly basis, KMB delivered losses in more months over the last year, than profits. KMB delivered profits less regularly than SP500 index. KMB significantly outperformed SP500 index in Nov 2018, when it returned +10.61% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. KMB had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Jan 2018 to May 2018) during which period it delivered -13.56%.
Every time you borrow money, you're robbing your future self.
-- Nathan W. Morris
KMB is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in KMB's volatility from 21 Sep, 2018 to 22 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 KMB has significant positive skewness in it's return distribution. This indicates that investors can expect KMB to recover from drawdowns quickly. Which makes KMB a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Investors trading in KMB derivatives at this moment can consider 'Bull Call Spread' options strategy to receive better risk-adjusted returns.
SP500 index has more chance of extreme outcomes than KMB. Therefore, SP500 must receive a lower allocation than KMB in your portfolio. SP500 index usually has shorter drawdown period than KMB.
Based on your interest in KMB you may find it interesting to know that BCE, ~MINING and ACC have all performed similar to KMB and qualify as alternative investment candidates that must be evaluated for diversification.
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