LHC GROUP, INC

99.24 -2.35 (-2.37%) Buy

Search for alternative investments is on for LHCG investors as it underperforms broader market

13 min read

LHC GROUP, INC was among the worst performers on Friday. It returned -2.37% to close at 99.24. On a day when the overall market breadth was 35%, it closed higher than 5% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing LHCG]

Buy-and-Hold investors in LHCG experienced a maximum drawdown of -17.41% over the last three months. It gained +3.84% during this up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.

Trend

LHCG has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, LHCG outperformed the SP500 index on 51% days.

LHCG was profitable on 58% days in the last three months. During this time, it delivered on average +0.08% per day. It delivered it's worst daily return of -6.15%, during this period, on Friday, 26 Oct, 2018. There was initially a bearish trend during this period which started on 10 Oct, 2018 and went on till 15 Oct, 2018. The trend delivered -9.94% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 7 Nov, 2018. This bullish trend delivered +16.18% to investors.

On monthly basis, LHCG delivered profits in more months over the last year, than losses. LHCG delivered profits less regularly than SP500 index. LHCG significantly outperformed SP500 index in Apr 2018, when it returned +18.16% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. LHCG had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

It's good to have money and the things that money can buy, but It's good, too, to check up once in a while and make sure that you haven't lost the things that money can't buy.
-- George Lorimer

LHCG is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in LHCG's volatility from 18 Sep, 2018 to 2 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 LHCG 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 LHCG. Therefore, SP500 must receive a lower allocation than LHCG in your portfolio. SP500 index usually has shorter drawdown period than LHCG.

On a general note (since you are interested in LHCG), two mid cap instruments that deserve special mention are LULU and TWTR. They have significantly outperformed the overall market.

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