33.36 -0.72 (-2.17%) Buy

REN investors herd to book profits while the going is good

13 min read

RESOLUTE ENERGY CORP was among the worst performers on Friday. It returned -2.17% to close at 33.36. On a day when the overall market breadth was 35%, it closed higher than 88% of the market. In comparison, the benchmark SP500 index closed today at -0.0233%.

[Themes containing REN]

Buy-and-Hold investors in REN experienced a maximum drawdown of -35.65% over the last three months. It grew by +8.24% during this up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.


REN has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 3 days, REN outperformed the SP500 index on 52% days.

During the last three months REN was mostly profitable and delivered on average +0.2% per day. It's best return during this period (of +13.81%) was on Monday, 19 Nov, 2018. While it's worst loss in the same period (of -12.45%) was on Wednesday, 24 Oct, 2018. There was initially a bearish trend during this period which started on 8 Oct, 2018 and went on till 11 Oct, 2018. The trend delivered -16.42% losses to investors. This was followed by a bullish trend that started on 29 Oct, 2018 and ended on 5 Nov, 2018. This bullish trend delivered +17.04% to investors.

On monthly basis, REN delivered profits in more months over the last year, than losses. REN delivered profits less regularly than SP500 index. REN significantly outperformed SP500 index in Nov 2018, when it returned +27.78% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. REN had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

"I finally know what distinguishes man from the other beasts: financial worries.

REN 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 REN's volatility from 10 Sep, 2018 to 24 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that REN 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.

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

On a general note (since you are interested in REN), three large cap instruments that deserve special mention are AMZN, CSCO and PFE. They have all outperformed the market and must be closely watched for investment opportunities.

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