PIONEER NATURAL RESOURCES CO

133.43 -3.61 (-2.71%) Sell

Want to invest in PXD? Avoid as it ranked among the worst performers

13 min read

PIONEER NATURAL RESOURCES CO ranked among the worst performers on Monday. It returned -2.71% to close at 133.43 which is it's 52 week low, down -37% from it's 52 week high.

[Themes containing PXD]

PXD showed a strong down trend over the last 3 months. During this period PXD returned -23.22% and saw a maximum drawdown of -29.0%. There were 2 short signals during this period that returned a cumulative of +12.52% to investors.

Trend

PXD has been underperforming the SP500 index in recent time, after having outperformed till 11 Oct, 2016. Over the last 2 years 11 months and 10 days, PXD underperformed the SP500 index on 50% days. Which indicates that on days PXD underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months PXD was mostly loss making and delivered on average -0.39% per day. It's best return during this period (of +8.88%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -5.66%) was on Wednesday, 24 Oct, 2018. There was initially a bearish trend during this period which started on 17 Oct, 2018 and went on till 24 Oct, 2018. The trend delivered -14.35% losses to investors. This was followed by a bullish trend that started on 14 Nov, 2018 and ended on 19 Nov, 2018. This bullish trend delivered +4.51% to investors.

On monthly basis, PXD delivered losses in more months over the last year, than profits. PXD delivered profits less regularly than SP500 index. PXD significantly outperformed SP500 index in Apr 2018, when it returned +20.75% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. PXD had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -25.36%. It is interesting to note that both PXD and SP500 index significantly outperform during months when quarterly/annual results are announced.

"A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.

PXD 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 PXD's volatility from 19 Sep, 2018 to 13 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 PXD has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

Investors trading in PXD derivatives at this moment can consider 'Protective Collar' options strategy to receive better risk-adjusted returns.

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

Based on your interest in PXD you may find it interesting to know that USAC and DAKT have both performed similar to PXD and can be considered by investors as alternative investment options.

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