39.23 +0.54 (+1.37%) Sell

PJT does a dead cat bounce, it's still too early to buy into it

13 min read

PJT PARTNERS INC. ranked among the best performers today. It delivered +1.37% to close at 39.23. It's recent 5 day performance has been -4.04%, -5.31%, -2.81%, +1.34% and -1.08%.

[Themes containing PJT]

PJT is currently in a bearish trend. The current bearish signal has generated a profit of +26.31% for investors in the last three months.


PJT has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 2 May, 2016 to 14 Aug, 2018. Over the last 2 years 11 months and 14 days, PJT outperformed the SP500 index on 52% days.

During the last three months PJT was mostly loss making and delivered on average -0.43% per day. It's best return during this period (of +6.13%) was on Tuesday, 6 Nov, 2018. While it's worst loss in the same period (of -7.21%) was on Tuesday, 4 Dec, 2018. The longest stort-term trends during this period were 6 profitable and losing days. The bullish trend (which returned +14.53%) started on 25 Oct, 2018 and went on till 1 Nov, 2018 while the bearish trend (which returned -15.75%) started on 17 Oct, 2018 and went on till 24 Oct, 2018.

During the last year PJT had 6 profitable months and 6 loss making months. PJT returned profits in fewer months than SP500 index. PJT was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -16.94% compared to -7.75% returned by SP500 index in Dec 2018. PJT 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 PJT and SP500 index significantly outperform during months when quarterly/annual results are announced.

We make a living by what we get, but we make a life by what we give.
-- Winston Churchill

PJT 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 PJT's volatility from 20 Sep, 2018 to 2 Nov, 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 PJT has significant positive skewness in it's return distribution. This indicates that investors can expect PJT to recover from drawdowns quickly. Which makes PJT a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in PJT you may find it interesting to know that ABMD and EW are both mid caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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