91.12 -0.54 (-0.59%) Buy

Don't consider buying PNW now, it is risky at the moment

13 min read

PINNACLE WEST CAPITAL CORP has destroyed investor wealth today. It lost -0.59% to close at 91.12. It's recent 5 day performance has been +0.65%, +0.32%, -0.01%, +0.78% and -0.16%.

[Themes containing PNW]

PNW showed a strong up trend over the last 3 months. During this period PNW grew by +13.36% . There were 3 long signals during this period that returned a cumulative of +7.56% to investors.


PNW has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 8 days, PNW outperformed the SP500 index on 53% days.

During the last three months PNW was mostly profitable and delivered on average +0.21% per day. It's best return during this period (of +2.73%) was on Wednesday, 24 Oct, 2018. While it's worst loss in the same period (of -2.29%) was on Thursday, 25 Oct, 2018. There was initially a bearish trend during this period which started on 24 Sep, 2018 and went on till 26 Sep, 2018. The trend delivered -3.54% losses to investors. This was followed by a bullish trend that started on 5 Nov, 2018 and ended on 13 Nov, 2018. This bullish trend delivered +8.07% to investors.

PNW had 7 profitable and 5 loss making months over the last year. During the last year, PNW underperformed SP500 index on monthly return basis. PNW significantly outperformed SP500 index in Nov 2018, when it returned +8.64% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. PNW had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

The studios don't finance anymore, they get outside funds.
-- Robert Rodriguez

PNW is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in PNW's volatility from 18 Sep, 2018 to 26 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that PNW has significant positive skewness in it's return distribution. This indicates that investors can expect PNW to recover from drawdowns quickly. Which makes PNW a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in PNW), two instruments that deserve special mention are AMRH and AYTU. 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.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