OCEANEERING INTERNATIONAL INC

14.31 -0.27 (-1.85%) Sell

Stop-loss on the minds of OII investors as it significantly underperforms

13 min read

OCEANEERING INTERNATIONAL INC ranked among the worst performers today. It lost -1.85% to close at 14.31. During the last week it lost -4.92% and saw a maximum drawdown of -5.98% before bouncing back.

[Themes containing OII]

Buy-and-Hold investors in OII experienced a maximum drawdown of -49.38% over the last three months. It lost -43.66% during this strong 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 +37.06%.

Trend

OII has been underperforming the SP500 index in recent time, after having outperformed till 4 Jan, 2016. Over the last 2 years 11 months and 10 days, OII underperformed the SP500 index on 53% days.

OII returned losses on 62% days in the last three months. During this time, it delivered on average -0.86% per day. It delivered it's worst daily return of -9.07%, during this period, on Thursday, 25 Oct, 2018. There was initially a bullish trend during this period which started on 19 Sep, 2018 and went on till 25 Sep, 2018. The bullish trend returned +11.96% to investors. This was followed by a bearish trend that started on 17 Oct, 2018 and ended on 29 Oct, 2018. This bearish trend lost -38.08% of investor capital.

OII had 6 profitable and 6 loss making months over the last year. During the last year, OII underperformed SP500 index on monthly return basis. OII was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -30.47% compared to -7.28% returned by SP500 index in Oct 2018. OII and SP500 index, both had periods of 6 consecutive profitable months. It is interesting to note that both OII and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Finance is not merely about making money. It's about achieving our deep goals and protecting the fruits of our labor. It's about stewardship and, therefore, about achieving the good society.

OII is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in OII's volatility from 17 Sep, 2018 to 25 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that OII has positive skewness in it's return distribution. This indicates that investors can expect OII to make attempts to recover from drawdowns quickly. Which makes OII a good candidate for momentum based trading on short-term bullish trends or counter-trends.

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

On a general note (since you are interested in OII), two instruments that have been extremely volatile in recent times are ICPT and IMTE. Investors in these instruments should consider reducing their exposure (to ICPT and IMTE) and diversifying their portfolios.

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