MEDNAX, INC.

36.25 -1.24 (-3.41%) Sell

Don't even consider investing in MD now, it is an investor's nightmare

13 min read

MD significantly underperformed today. On a longer term basis, investors in MEDNAX, INC. made +0.01% per day. Friday's performance of -3.41% was a underperformance compared to it's daily average.

[Themes containing MD]

MD showed a strong bearish trend over the last 3 months. During this period MD fell by -23.38% and saw a maximum drawdown of -23.73%. There was a short signal during this period which returned +20.5%.

Trend

MD has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 27 Jan, 2016 to 7 Nov, 2018. Over the last 2 years 11 months and 10 days, MD underperformed the SP500 index on 50% days. Which indicates that on days MD underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months MD was mostly loss making and delivered on average -0.41% per day. It's best return during this period (of +2.61%) was on Monday, 24 Sep, 2018. While it's worst loss in the same period (of -6.44%) was on Thursday, 1 Nov, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 21 Nov, 2018 and went on till 28 Nov, 2018. This bullish trend returned +4.13% to investors.

During the last year MD had 3 profitable months and 9 loss making months. MD returned profits in fewer months than SP500 index. MD was also a more risky investment than SP500 index as it's worst month in the last year, Apr 2018, returned -15.64% compared to -7.28% returned by SP500 index in Oct 2018. MD had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Apr 2018 to Jul 2018) during which period it delivered -22.15%.

One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.
-- William A. Feather

MD 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 MD's volatility from 17 Sep, 2018 to 7 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 MD has significant positive skewness in it's return distribution. This indicates that investors can expect MD to recover from drawdowns quickly. Which makes MD a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in MD you may find it interesting to know that SBOT has shown remarkable performance and deserves to be on every investors' watchlist.

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