UNIVERSAL DISPLAY CORP

95.38 -3.11 (-3.26%) Sell

The party never started for OLED investors as it ranked among the worst performers

13 min read

UNIVERSAL DISPLAY CORP significantly underperformed today. It returned -3.26% to close at 95.38. It's recent 5 day performance has been +7.46%, -4.12%, +4.19%, +0.28% and +1.36%.

[Themes containing OLED]

OLED is currently in a down trend. The current bearish signal has generated a profit of +11.55% for investors in the last three months.

Trend

OLED has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 3 days, OLED outperformed the SP500 index on 49% days. Which indicates that on days OLED outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

OLED was profitable on 52% days in the last three months. During this time, it delivered on average -0.35% per day. It delivered it's worst daily return of -20.51%, during this period, on Friday, 2 Nov, 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 +4.24% to investors. This was followed by a bearish trend that started on 17 Oct, 2018 and ended on 22 Oct, 2018. This bearish trend lost -8.84% of investor capital.

On monthly basis, OLED delivered losses in more months over the last year, than profits. OLED delivered profits less regularly than SP500 index. OLED significantly outperformed SP500 index in Aug 2018, when it returned +27.1% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. OLED had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Jan 2018 to Apr 2018) during which period it delivered -58.76%. It is interesting to note that both OLED and SP500 index significantly outperform during months when quarterly/annual results are announced.

Many people take no care of their money till they come nearly to the end of it, and others do just the same with their time.
-- Johann Wolfgang von Goethe

OLED 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 OLED's volatility from 1 Oct, 2018 to 30 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that OLED 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 OLED 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 OLED. Therefore, SP500 must receive a lower allocation than OLED in your portfolio. SP500 index usually has shorter drawdown period than OLED.

On a general note (since you are interested in OLED), TPNL has performed really well this year and deserves to be closely tracked for investment opportunities.

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