53.09 -0.24 (-0.45%) Buy

Stop-loss on the minds of MXIM investors as it performed worse than the broader market

13 min read

MXIM was among the worst performers today. On a longer term basis, investors in MAXIM INTEGRATED PRODUCTS INC made -0.02% per day. Tuesday's performance of -0.45% was a significant underperformance compared to it's daily average.

[Themes containing MXIM]

Buy-and-Hold investors in MXIM experienced a maximum drawdown of -21.48% over the last three months. It lost -7.78% during this down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +3.42%.


MXIM has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 7 days, MXIM outperformed the SP500 index on 55% days.

During the last three months MXIM delivered profits on 55% days. However, it still managed to end this period in a loss. It's best return during this period (of +6.2%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -8.15%) was on Wednesday, 24 Oct, 2018. There was initially a bearish trend during this period which started on 25 Sep, 2018 and went on till 27 Sep, 2018. The trend delivered -5.75% losses to investors. This was followed by a bullish trend that started on 25 Oct, 2018 and ended on 1 Nov, 2018. This bullish trend delivered +12.7% to investors.

MXIM had 5 profitable and 7 loss making months over the last year. During the last year, MXIM underperformed SP500 index on monthly return basis. MXIM significantly outperformed SP500 index in Jan 2018, when it returned +15.16% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. MXIM had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

It's how you deal with failure that determines how you achieve success.
-- David Feherty

MXIM 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 MXIM's volatility from 1 Oct, 2018 to 1 Nov, 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 MXIM 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.

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

Based on your interest in MXIM you may find it interesting to know that I and HEAR have both shown remarkable performance this year and deserve to be on every investors' watchlist.

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