54.84 -0.26 (-0.47%) Sell

Are you evaluating investing in LVS? Avoid as it significantly underperformed

13 min read

LVS significantly underperformed today. On a longer term basis, investors in LAS VEGAS SANDS CORP made +0.02% per day. Friday's performance of -0.47% was a significant underperformance compared to it's daily average.

[Themes containing LVS]

LVS showed a strong down trend over the last 3 months. During this period LVS lost -10.44% and saw a maximum drawdown of -17.8%. There was a short signal during this period which returned +10.44%.


LVS has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, LVS underperformed the SP500 index on 47% days. Which indicates that on days LVS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months LVS was mostly loss making and delivered on average -0.14% per day. It's best return during this period (of +11.82%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -6.24%) was on Monday, 19 Nov, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 11 Oct, 2018. The trend delivered -9.07% losses to investors. This was followed by a bullish trend that started on 13 Nov, 2018 and ended on 16 Nov, 2018. This bullish trend delivered +5.41% to investors.

LVS had 5 profitable and 7 loss making months over the last year. During the last year, LVS underperformed SP500 index on monthly return basis. LVS was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -14.59% compared to -7.28% returned by SP500 index in Oct 2018. LVS had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -32.91%. It is interesting to note that both LVS and SP500 index significantly outperform during months when quarterly/annual results are announced.

It takes as much energy to wish as it does to plan.
-- Eleanor Roosevelt

LVS 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 LVS's volatility from 17 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 LVS has significant positive skewness in it's return distribution. This indicates that investors can expect LVS to recover from drawdowns quickly. Which makes LVS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in LVS derivatives at this moment can consider 'Protective Collar' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in LVS), two large cap instruments that deserve special mention are AMZN and CSCO. They have significantly outperformed the overall market.

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