Stop-loss on the minds of KO investors as it underperforms

COCA COLA CO is a falling knife that can bleed you if you catch it on Tuesday. It lost -0.02% to close at 48.32. It is currently trading +16% above it's 52 week low of 41.55 and is down only -4% from it's 52 week high.

[Themes containing KO]

KO is currently in a up trend. The current bullish signal has generated a profit of +1.45% for KO's investors in the last three months.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

KO has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 14 days, KO underperformed the SP500 index on 47% days. Which indicates that on days KO underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months KO was mostly profitable and delivered on average +0.08% per day. It's best return during this period (of +2.9%) was on Friday, 30 Nov, 2018. While it's worst loss in the same period (of -2.28%) was on Thursday, 11 Oct, 2018. There was initially a bullish trend during this period which started on 26 Sep, 2018 and went on till 2 Oct, 2018. The bullish trend returned +1.81% to investors. This was followed by a bearish trend that started on 3 Dec, 2018 and ended on 7 Dec, 2018. This bearish trend lost -2.62% of investor capital.

KO had 8 profitable and 4 loss making months over the last year. During the last year, number of profitable months of KO and SP500 index were the same. KO was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -9.18% compared to -7.75% returned by SP500 index in Dec 2018. KO 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 KO and SP500 index significantly outperform during months when quarterly/annual results are announced.

Happiness is not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort.
-- Franklin D. Roosevelt

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

Investors trading in KO derivatives at this moment can consider 'Bear Put Spread' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in KO), three instruments that are extremely volatile are NVCN, OPNT and VIPS. They must all be evaluated prudently and investors are better off avoiding them at the moment.