17.92 -0.04 (-0.22%) Sell

Search for alternative investments is on for PDM investors as it underperforms broader market

13 min read

PIEDMONT OFFICE REALTY TRUST, INC. trailed the broader market today. It returned -0.22% to close at 17.92. During the last week it returned -1.59% and saw a maximum drawdown of -1.87% before bouncing back.

[Themes containing PDM]

Buy-and-Hold investors in PDM experienced a maximum drawdown of -8.8% over the last three months. It returned -8.34% during this down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +5.42%.


PDM has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, PDM underperformed the SP500 index on 50% days. Which indicates that on days PDM underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

PDM returned losses on 54% days in the last three months. During this time, it delivered on average -0.13% per day. It delivered it's worst daily return of -2.97%, during this period, on Friday, 26 Oct, 2018. There was initially a bullish trend during this period which started on 5 Nov, 2018 and went on till 8 Nov, 2018. The bullish trend returned +4.79% to investors. This was followed by a bearish trend that started on 7 Dec, 2018 and ended on 12 Dec, 2018. This bearish trend lost -4.65% of investor capital.

On monthly basis, PDM delivered profits and losses in equal number of months. PDM delivered profits less regularly than SP500 index. PDM was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -7.99% compared to -7.28% returned by SP500 index in Oct 2018. PDM had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year. It is interesting to note that both PDM and SP500 index significantly outperform during months when quarterly/annual results are announced.

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.

PDM 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 PDM's volatility from 5 Oct, 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 PDM has significant positive skewness in it's return distribution. This indicates that investors can expect PDM to recover from drawdowns quickly. Which makes PDM a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in PDM), two small cap instruments that deserve special mention are PTC and KEYS. They have significantly outperformed the overall market.

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.name}} {{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