NORTHROP GRUMMAN CORP was among the worst performers today. It delivered -0.12% to close at 256.94. During the last week it delivered -4.88% and saw a maximum drawdown of -4.88%.
NOC is currently in a bearish trend. The current bearish signal has generated a profit of +10.12% for investors in the last three months.
NOC has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 5 Apr, 2018 to 4 Dec, 2018. Over the last 2 years 11 months and 14 days, NOC outperformed the SP500 index on 52% days.
During the last three months NOC was mostly loss making and delivered on average -0.29% per day. It's best return during this period (of +4.93%) was on Monday, 10 Dec, 2018. While it's worst loss in the same period (of -6.0%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 9 losing days, which started on 17 Oct, 2018 and ended on 29 Oct, 2018. This bearish trend lost -19.21% of investor capital.
The last 12 months saw NOC's investors making profits in 4 months and incurring losses in 8 months. NOC was less consistent in delivering monthly returs than SP500 index. NOC was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -17.76% compared to -7.75% returned by SP500 index in Dec 2018. NOC had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Jun 2018 to Aug 2018) during which period it delivered -9.35%.
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NOC 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 NOC's volatility from 4 Oct, 2018 to 29 Oct, 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 NOC has significant positive skewness in it's return distribution. This indicates that investors can expect NOC to recover from drawdowns quickly. Which makes NOC a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Investors trading in NOC derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.
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