130.62 -2.68 (-2.05%) Buy

Looking to invest in PAYC? Look for alternatives because it underperformed broader market

13 min read

PAYCOM SOFTWARE, INC. has destroyed investor wealth on Friday. It fell by -2.05% to close at 130.62. It is currently trading +62% above it's 52 week low of 80.33 and is down only -20% from it's 52 week high.

[Themes containing PAYC]

PAYC showed a strong bearish trend over the last 3 months. During this period PAYC fell by -17.01% and saw a maximum drawdown of -28.83%. There was a short signal during this period which returned +11.48%.


PAYC has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 9 Feb, 2016 to 14 Sep, 2018. Over the last 2 years 11 months and 10 days, PAYC outperformed the SP500 index on 58% days.

During the last three months PAYC was mostly loss making and delivered on average -0.26% per day. It's best return during this period (of +7.05%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -8.45%) was on Monday, 19 Nov, 2018. The longest stort-term trend during this period was 4 profitable days, which started on 28 Nov, 2018 and went on till 3 Dec, 2018. This bullish trend returned +10.61% to investors.

During the last year PAYC had 8 profitable months and 4 loss making months. Profitable number of months of PAYC and SP500 index were the same. PAYC significantly outperformed SP500 index in Aug 2018, when it returned +46.0% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. PAYC had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year. It is interesting to note that both PAYC and SP500 index significantly outperform during months when quarterly/annual results are announced.

Try not to become a man of success. Rather become a man of value.
-- Albert Einstein

PAYC 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 PAYC's volatility from 28 Sep, 2018 to 31 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 PAYC 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.

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

Based on your interest in PAYC you may find it interesting to know that GNK is highly volatile and investors investing in it must take extreme caution. Consider either reducing your exposure to GNK or sufficiently diversifying your portfolio.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{}} {{detail.trend}} 
If you liked what you read here ...

... 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
Share with friends   WhatsApp   Facebook   Twitter