NKE investors elated by performance

NIKE INC ranked among the best performers on Tuesday. It delivered +1.79% to close at 71.15. It is currently trading -16% below it's 52 week high of 85.55.

[Themes containing NKE]

Buy-and-Hold investors in NKE experienced a maximum drawdown of -18.29% over the last three months. It fell by -15.73% during this strong bearish 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 +11.26%.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

NKE has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 2 Feb, 2016 to 12 Oct, 2017. Over the last 2 years 11 months and 14 days, NKE underperformed the SP500 index on 49% days. Which indicates that on days NKE underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months NKE was mostly loss making and delivered on average -0.26% per day. It's best return during this period (of +3.75%) was on Monday, 3 Dec, 2018. While it's worst loss in the same period (of -6.52%) was on Wednesday, 10 Oct, 2018. The longest stort-term trend during this period was 5 losing days, which started on 1 Oct, 2018 and ended on 5 Oct, 2018. This bearish trend lost -5.52% of investor capital.

During the last year NKE had 7 profitable months and 5 loss making months. NKE returned profits in fewer months than SP500 index. NKE was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -11.15% compared to -7.75% returned by SP500 index in Dec 2018. NKE had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both NKE and SP500 index significantly outperform during months when quarterly/annual results are announced.

"There are two kinds of investors, be they large or small: those who don't know where the market is headed, and those who don't know that they don't know. Then again, there is a third type of investor -the investment professional, who indeed knows that he or she doesn't know, but whose livelihood depends upon appearing to know.

NKE 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 NKE's volatility from 25 Sep, 2018 to 10 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that NKE 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.

Investors trading in NKE derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in NKE you may find it interesting to know that PTC, BURL and KEYS are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.