20.25 -0.06 (-0.3%) Buy

RELX investors herd to book profits while the going is good

13 min read

RELX PLC (Foreign) was among the worst performers today. It lost -0.3% to close at 20.25. It's recent 5 day performance has been -1.07%, +0.39%, -1.64%, -2.21% and +1.33%.

[Themes containing RELX]

RELX showed a down trend over the last 3 months. During this period RELX lost -4.57% and saw a maximum drawdown of -8.81%. There was a short signal during this period which returned +3.86%.


RELX has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 7 days, RELX underperformed the SP500 index on 48% days. Which indicates that on days RELX underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months RELX was mostly loss making and delivered on average -0.07% per day. It's best return during this period (of +3.53%) was on Thursday, 20 Sep, 2018. While it's worst loss in the same period (of -3.77%) was on Thursday, 4 Oct, 2018. There was initially a bearish trend during this period which started on 13 Sep, 2018 and went on till 19 Sep, 2018. The trend delivered -6.73% losses to investors. This was followed by a bullish trend that started on 24 Sep, 2018 and ended on 1 Oct, 2018. This bullish trend delivered +3.65% to investors.

RELX had 6 profitable and 6 loss making months over the last year. During the last year, RELX underperformed SP500 index on monthly return basis. RELX was also a more risky investment than SP500 index as it's worst month in the last year, Jan 2018, returned -7.36% compared to -7.28% returned by SP500 index in Oct 2018. RELX had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

There is nothing wrong with changing a plan when the situation has changed.
-- Seneca

RELX is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in RELX's volatility from 18 Sep, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

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

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

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

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