KNIGHT-SWIFT TRANSPORTATION HOLDINGS INC.

27.32 -1.12 (-4.11%) Sell

Looking to invest in KNX? Avoid at the moment as it was among the worst performers

13 min read

KNIGHT-SWIFT TRANSPORTATION HOLDINGS INC. was among the worst performers on Thursday. It fell by -4.11% to close at 27.32 which is it's 52 week low, down -45% from it's 52 week high.

[Themes containing KNX]

KNX showed a strong bearish trend over the last 3 months. During this period KNX fell by -23.32% and saw a maximum drawdown of -25.33%. There were 2 short signals during this period that returned a cumulative of +8.08% to investors.

Trend

KNX has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 19 Jan, 2016 to 21 Mar, 2018. Over the last 2 years 11 months and 9 days, KNX outperformed the SP500 index on 49% days. Which indicates that on days KNX outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

KNX returned losses on 62% days in the last three months. During this time, it delivered on average -0.39% per day. It delivered it's worst daily return of -9.86%, during this period, on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 5 losing days, which started on 7 Dec, 2018 and ended on 13 Dec, 2018. This bearish trend lost -11.41% of investor capital.

During the last year KNX had 5 profitable months and 7 loss making months. KNX returned profits in fewer months than SP500 index. KNX was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -21.18% compared to -7.28% returned by SP500 index in Oct 2018. KNX had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered -21.77%.

Wealth consists not in having great possessions, but in having few wants.
-- Epictetus

KNX is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in KNX's volatility from 20 Sep, 2018 to 1 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 KNX 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 KNX. Therefore, SP500 must receive a lower allocation than KNX in your portfolio. SP500 index usually has shorter drawdown period than KNX.

On a general note (since you are interested in KNX), two instruments that have been extremely volatile in recent times are OPNT and IX. Investors in these instruments should consider reducing their exposure (to OPNT and IX) and diversifying their portfolios.

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