LG DISPLAY CO., LTD. (Foreign) is a falling knife that can bleed you if you catch it on Friday. It delivered -2.09% to close at 7.48. It is currently trading -52% below it's 52 week high of 15.65.
LPL showed a strong bearish trend over the last 3 months. During this period LPL delivered -20.09% and saw a maximum drawdown of -27.03%. There were 3 short signals during this period that returned a cumulative of +15.57% to investors.
LPL has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 5 Jul, 2017 to 8 Nov, 2018. Over the last 2 years 11 months and 3 days, LPL underperformed the SP500 index on 50% days. Which indicates that on days LPL underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
LPL returned losses on 58% days in the last three months. During this time, it delivered on average -0.31% per day. It delivered it's worst daily return of -9.46%, during this period, on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 10 losing days, which started on 28 Sep, 2018 and ended on 11 Oct, 2018. This bearish trend lost -13.66% of investor capital.
The last 12 months saw LPL's investors making profits in 4 months and incurring losses in 8 months. LPL was less consistent in delivering monthly returs than SP500 index. LPL was also a more risky investment than SP500 index as it's worst month in the last year, Jun 2018, returned -19.77% compared to -7.28% returned by SP500 index in Oct 2018. LPL had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -53.36%. It is interesting to note that both LPL and SP500 index significantly outperform during months when quarterly/annual results are announced.
Invest like a bull, sit like a bear and watch like an eagle. (mantra for long term investing)
-- Vijay Kedia
LPL is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in LPL's volatility from 10 Sep, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that LPL has significant negative skewness in it's return distribution. This indicates that LPL is very risky for short-term investment and can significantly underperform for long durations.
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