LYB investors hurt by serious losses

LYONDELLBASELL INDUSTRIES N.V. has destroyed investor wealth today. It fell by -2.06% to close at 83.68. It's recent 5 day performance has been +0.73%, +0.46%, +0.07%, -4.37% and -2.58%.

[Themes containing LYB]

LYB is currently in a bearish trend. The current bearish signal has generated a profit of +18.87% for investors in the last three months.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

LYB has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 5 Jan, 2016 to 13 Dec, 2018. One must note that LYB is currently at it's worst performance to the SP500 index which makes it a bad investment candidate. Over the last 2 years 11 months and 9 days, LYB underperformed the SP500 index on 49% days. Which indicates that on days LYB underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months LYB was mostly loss making and delivered on average -0.35% per day. It's best return during this period (of +3.65%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -4.37%) was on Friday, 7 Dec, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 30 Oct, 2018 and went on till 7 Nov, 2018. This bullish trend returned +9.18% to investors.

During the last year LYB had 6 profitable months and 6 loss making months. LYB returned profits in fewer months than SP500 index. LYB was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -14.2% compared to -7.28% returned by SP500 index in Oct 2018. LYB had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both LYB and SP500 index significantly outperform during months when quarterly/annual results are announced.

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.

LYB is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in LYB's volatility from 27 Sep, 2018 to 7 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 LYB has significant positive skewness in it's return distribution. This indicates that investors can expect LYB to recover from drawdowns quickly. Which makes LYB a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in LYB 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 LYB. Therefore, SP500 must receive a lower allocation than LYB in your portfolio. SP500 index usually has shorter drawdown period than LYB.

On a general note (since you are interested in LYB), BURL is a small cap that deserves to be closely tracked for investment opportunities.