Don't cash in on MUX now, it performed well
12 Dec, 201813 min read
Share with friends 
MUX ranked among the best performers today. On a longer term basis, investors in MCEWEN MINING INC. made +0.13% per day. Wednesday's performance of +1.74% was a outperformance compared to it's daily average.
MUX showed a strong bearish trend over the last 3 months. During this period MUX delivered -12.06% and saw a maximum drawdown of -27.66%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in MUX till volatility reduces and a clear trend emerges.
MUX has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 19 Jan, 2016 to 18 Aug, 2016. Over the last 2 years 11 months and 8 days, MUX outperformed the SP500 index on 51% days.
During the last three months MUX was mostly loss making and delivered on average -0.17% per day. It's best return during this period (of +5.31%) was on Thursday, 11 Oct, 2018. While it's worst loss in the same period (of -7.98%) was on Wednesday, 31 Oct, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 2 Oct, 2018 and went on till 11 Oct, 2018. This bullish trend returned +12.95% to investors.
The last 12 months saw MUX's investors making profits in 4 months and incurring losses in 8 months. MUX was less consistent in delivering monthly returs than SP500 index. MUX was also a more risky investment than SP500 index as it's worst month in the last year, Aug 2018, returned -12.05% compared to -7.28% returned by SP500 index in Oct 2018. MUX and SP500 index, both had periods of 2 consecutive losing months. It is interesting to note that both MUX and SP500 index significantly outperform during months when quarterly/annual results are announced.
If we command our wealth, we shall be rich and free. If our wealth commands us, we are poor indeed.
-- Edmund Burke
MUX 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 MUX's volatility from 5 Oct, 2018 to 31 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that MUX 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.
MUX has more chance of extreme outcomes than the SP500 index. Therefore, MUX must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than MUX.
Based on your interest in MUX you may find it interesting to know that AMZN and UNH are both large caps that have shown remarkable performance and deserve to be on every investors' watchlist.
... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.
All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.
We want to empower investors with all the tools and analysis required by them to make a rational investment decision.
If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute