30.59 -0.24 (-0.78%) Buy

PPL investors take a moment to reassess their portfolio allocation

13 min read

PPL CORP has destroyed investor wealth on Friday. It delivered -0.78% to close at 30.59. It is currently trading +19% above it's 52 week low of 25.61 and is down only -9% from it's 52 week high.

[Themes containing PPL]

PPL is currently in a bullish trend. The current bullish signal has generated a profit of +0.53% for PPL's investors in the last three months.


PPL has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 10 Feb, 2016 to 11 Jun, 2018. Over the last 2 years 11 months and 10 days, PPL underperformed the SP500 index on 49% days. Which indicates that on days PPL underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months PPL was mostly profitable and delivered on average +0.02% per day. It's best return during this period (of +2.23%) was on Wednesday, 24 Oct, 2018. While it's worst loss in the same period (of -5.22%) was on Thursday, 15 Nov, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 1 Nov, 2018 and went on till 9 Nov, 2018. This bullish trend returned +4.17% to investors.

The last 12 months saw PPL's investors making profits in 7 months and incurring losses in 5 months. PPL was less consistent in delivering monthly returs than SP500 index. PPL was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -10.1% compared to -7.28% returned by SP500 index in Oct 2018. PPL had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both PPL and SP500 index significantly outperform during months when quarterly/annual results are announced.

"The best thing money can buy is financial freedom.

PPL 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 PPL's volatility from 18 Sep, 2018 to 15 Nov, 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 PPL has significant positive skewness in it's return distribution. This indicates that investors can expect PPL to recover from drawdowns quickly. Which makes PPL 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 PPL. Therefore, SP500 must receive a lower allocation than PPL in your portfolio. PPL usually has shorter drawdown period than the SP500 index.

Based on your interest in PPL you may find it interesting to know that GNK and IMTE are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).

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