Waiting to invest in PAC? Avoid at the moment as it has destroyed investor wealth
14 Dec, 201813 min read
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PACIFIC AIRPORT GROUP (Foreign) has destroyed investor wealth today. It delivered -0.56% to close at 70.86. It's recent 5 day performance has been +0.21%, +0.78%, -0.17%, -1.5% and +0.01%.
PAC showed a strong bearish trend over the last 3 months. During this period PAC delivered -33.1% and saw a maximum drawdown of -40.44%. There was a short signal during this period which returned +29.97%.
PAC has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 17 May, 2016 to 26 Nov, 2018. Over the last 2 years 11 months and 10 days, PAC underperformed the SP500 index on 48% days. Which indicates that on days PAC underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
During the last three months PAC was mostly loss making and delivered on average -0.61% per day. It's best return during this period (of +5.21%) was on Monday, 5 Nov, 2018. While it's worst loss in the same period (of -7.79%) was on Monday, 29 Oct, 2018. The longest stort-term trend during this period was 7 losing days, which started on 6 Nov, 2018 and ended on 14 Nov, 2018. This bearish trend lost -21.24% of investor capital.
The last 12 months saw PAC's investors making profits in 8 months and incurring losses in 4 months. During the last year, PAC and SP500 index had the same number of profitable months. PAC was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -25.06% compared to -7.28% returned by SP500 index in Oct 2018. PAC had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.
Bottoms in the investment world don't end with four-year lows; they end with 10- or 15-year lows.
-- Jim Rogers
PAC is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in PAC's volatility from 20 Sep, 2018 to 9 Nov, 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 PAC has significant positive skewness in it's return distribution. This indicates that investors can expect PAC to recover from drawdowns quickly. Which makes PAC a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
PAC has more chance of extreme outcomes than the SP500 index. Therefore, PAC must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than PAC.
Based on your interest in PAC you may find it interesting to know that TWTR is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.
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