PG&E CORP is a falling knife that can bleed you if you catch it today. It fell by -0.92% to close at 25.79. It's recent 5 day performance has been -2.69%, -1.33%, +2.77%, -1.42% and -2.55%.
PCG showed a strong bearish trend over the last 3 months. During this period PCG fell by -44.24% and saw a maximum drawdown of -63.77%. There was a short signal during this period which returned +35.4%.
PCG has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 27 Jun, 2016 to 15 Nov, 2018. Over the last 2 years 11 months and 3 days, PCG underperformed the SP500 index on 49% days. Which indicates that on days PCG underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
PCG returned losses on 54% days in the last three months. During this time, it delivered on average -0.63% per day. It delivered it's best daily return of +37.54%, during this period, on Friday, 16 Nov, 2018. The longest stort-term trend during this period was 6 losing days, which started on 8 Nov, 2018 and ended on 15 Nov, 2018. This bearish trend lost -89.18% of investor capital.
During the last year PCG had 4 profitable months and 8 loss making months. PCG returned profits in fewer months than SP500 index. PCG was also a more risky investment than SP500 index as it's worst month in the last year, Nov 2018, returned -43.64% compared to -7.28% returned by SP500 index in Oct 2018. PCG had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from May 2018 to Jul 2018) during which period it delivered -9.3%. It is interesting to note that both PCG and SP500 index significantly outperform during months when quarterly/annual results are announced.
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PCG is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in PCG's volatility from 20 Sep, 2018 to 12 Nov, 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 PCG 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 PCG derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.
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