ORACLE CORP performed better than the broader market today. It returned +0.26% to close at 45.85. It's recent 5 day performance has been -1.87%, -1.33%, -0.19%, +1.85% and -0.45%.
ORCL showed a down trend over the last 3 months. During this period ORCL lost -7.24% and saw a maximum drawdown of -11.72%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in ORCL till volatility reduces and a clear trend emerges.
During the last three months ORCL was mostly loss making and delivered on average -0.11% per day. It's best return during this period (of +3.67%) was on Thursday, 15 Nov, 2018. While it's worst loss in the same period (of -4.25%) was on Thursday, 6 Dec, 2018. There was initially a bearish trend during this period which started on 9 Oct, 2018 and went on till 15 Oct, 2018. The trend delivered -4.61% losses to investors. This was followed by a bullish trend that started on 2 Nov, 2018 and ended on 9 Nov, 2018. This bullish trend delivered +4.1% to investors.
ORCL had 6 profitable and 6 loss making months over the last year. During the last year, ORCL underperformed SP500 index on monthly return basis. ORCL significantly outperformed SP500 index in Jan 2018, when it returned +10.64% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ORCL 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 ORCL and SP500 index significantly outperform during months when quarterly/annual results are announced.
"Surplus wealth is a sacred trust which its possessor is bound to administer in his lifetime for the good of the community.
ORCL 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 ORCL's volatility from 9 Oct, 2018 to 18 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 ORCL has significant positive skewness in it's return distribution. This indicates that investors can expect ORCL to recover from drawdowns quickly. Which makes ORCL a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Investors trading in ORCL derivatives at this moment can consider 'Calendar Spread' options strategy to receive better risk-adjusted returns.
On a general note (since you are interested in ORCL), three instruments that are extremely volatile are VIPS, IX and ICPT. They must all be evaluated prudently and investors are better off avoiding them at the moment.
... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.
All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.
We want to empower investors with all the tools and analysis required by them to make a rational investment decision.If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute