59.99 -1.98 (-3.3%) Buy

SGEN investors looking to cut their losses short

13 min read

SEATTLE GENETICS INC was among the worst performers today. It delivered -3.3% to close at 59.99. During the last week it delivered -4.14% and saw a maximum drawdown of -6.19% before bouncing back.

[Themes containing SGEN]

Buy-and-Hold investors in SGEN experienced a maximum drawdown of -35.86% over the last three months. It delivered -22.87% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +18.03%.


SGEN has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 10 Feb, 2016 to 17 Nov, 2016. Over the last 2 years 11 months and 3 days, SGEN outperformed the SP500 index on 53% days.

SGEN returned losses on 54% days in the last three months. During this time, it delivered on average -0.35% per day. It delivered it's worst daily return of -15.38%, during this period, on Friday, 26 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 4 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -15.24% of investor capital.

The last 12 months saw SGEN's investors making profits in 8 months and incurring losses in 4 months. During the last year, SGEN and SP500 index had the same number of profitable months. SGEN was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -30.84% compared to -7.28% returned by SP500 index in Oct 2018. SGEN and SP500 index, both had periods of 6 consecutive profitable months.

"Wide diversification is only required when investors do not understand what they are doing.

SGEN 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 SGEN's volatility from 10 Sep, 2018 to 30 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 SGEN has significant positive skewness in it's return distribution. This indicates that investors can expect SGEN to recover from drawdowns quickly. Which makes SGEN a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in SGEN you may find it interesting to know that TYHT and AMRH have both shown remarkable performance and deserve to be on every investors' watchlist.

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