LIONS GATE ENTERTAINMENT CORP was among the worst performers on Thursday. It returned -4.2% to close at 14.6 which is it's 52 week low, down -56% from it's 52 week high.
LGFB showed a strong down trend over the last 3 months. During this period LGFB returned -32.78% and saw a maximum drawdown of -37.79%. There was a short signal during this period which returned +32.78%.
LGFB has been underperforming the SP500 index in recent time, after having outperformed till 4 Jan, 2016. LGFB is currently at it's worst performance to the SP500 index and therefore does not make a good investment candidate. Over the last 2 years 11 months and 9 days, LGFB underperformed the SP500 index on 53% days.
LGFB returned losses on 61% days in the last three months. During this time, it delivered on average -0.57% per day. It delivered it's worst daily return of -8.99%, during this period, on Wednesday, 24 Oct, 2018. There was initially a bullish trend during this period which started on 25 Sep, 2018 and went on till 28 Sep, 2018. The bullish trend returned +14.09% to investors. This was followed by a bearish trend that started on 17 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -22.35% of investor capital.
On monthly basis, LGFB delivered losses in more months over the last year, than profits. LGFB delivered profits less regularly than SP500 index. LGFB was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -20.58% compared to -7.28% returned by SP500 index in Oct 2018. LGFB had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Feb 2018 to May 2018) during which period it delivered -34.28%. It is interesting to note that both LGFB and SP500 index significantly outperform during months when quarterly/annual results are announced.
There is nothing wrong with changing a plan when the situation has changed.
LGFB 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 LGFB's volatility from 26 Sep, 2018 to 11 Dec, 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 LGFB has significant positive skewness in it's return distribution. This indicates that investors can expect LGFB to recover from drawdowns quickly. Which makes LGFB a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
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