NICE LTD. (FOREIGN)

112.72 -0.27 (-0.24%) Buy

NICE investors treading cautiously as performance is muted

13 min read

NICE LTD. (Foreign) is a falling knife that can bleed you if you catch it today. It returned -0.24% to close at 112.72. During the last week it returned +0.18% and saw a maximum drawdown of -0.45% before bouncing back.

[Themes containing NICE]

Buy-and-Hold investors in NICE experienced a maximum drawdown of -13.35% over the last three months. It returned -3.95% 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 +5.24%.

Trend

NICE has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 9 days, NICE outperformed the SP500 index on 55% days.

During the last three months NICE was mostly loss making and delivered on average -0.05% per day. It's best return during this period (of +5.49%) was on Thursday, 8 Nov, 2018. While it's worst loss in the same period (of -2.96%) was on Wednesday, 10 Oct, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 10 Oct, 2018. The trend delivered -8.92% losses to investors. This was followed by a bullish trend that started on 26 Nov, 2018 and ended on 3 Dec, 2018. This bullish trend delivered +5.32% to investors.

On monthly basis, NICE delivered profits and losses in equal number of months. NICE delivered profits less regularly than SP500 index. NICE significantly outperformed SP500 index in May 2018, when it returned +11.12% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. NICE had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year.

"Being in control of your finances is a great stress reliever.

NICE 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 NICE's volatility from 14 Sep, 2018 to 9 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 NICE 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 NICE. Therefore, SP500 must receive a lower allocation than NICE in your portfolio. SP500 index usually has shorter drawdown period than NICE.

Based on your interest in NICE you may find it interesting to know that GNK and OPNT are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).

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