Don't consider buying PNW now, it is risky at the moment
12 Dec, 201813 min read
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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%.
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.
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