SIRIUS XM HOLDINGS INC.

6.15 +0.03 (+0.49%) Sell

SIRI investors update their stop-losses higher

13 min read

SIRIUS XM HOLDINGS INC. showed marginal outperformance today. It increased by +0.49% to close at 6.15. During the last week it delivered -2.69% and saw a maximum drawdown of -3.16% before bouncing back.

[Themes containing SIRI]

SIRI is currently in a bearish trend. The current bearish signal has generated a profit of +1.76% for investors in the last three months.

Trend

SIRI has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 9 Feb, 2016 to 18 Jun, 2018. Over the last 2 years 11 months and 14 days, SIRI outperformed the SP500 index on 54% days.

During the last three months SIRI was mostly loss making and delivered on average -0.18% per day. It's best return during this period (of +4.27%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -10.32%) was on Monday, 24 Sep, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 30 Oct, 2018 and went on till 6 Nov, 2018. This bullish trend returned +12.26% to investors.

The last 12 months saw SIRI's investors making profits in 7 months and incurring losses in 5 months. SIRI was less consistent in delivering monthly returs than SP500 index. SIRI significantly outperformed SP500 index in Jan 2018, when it returned +17.27% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. SIRI had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both SIRI and SP500 index significantly outperform during months when quarterly/annual results are announced.

Know what you own, and know why you own it.
-- Peter Lynch

SIRI 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 SIRI's volatility from 21 Sep, 2018 to 30 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

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

Investors trading in SIRI derivatives at this moment can consider 'Married Put' options strategy to receive better risk-adjusted returns.

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

Based on your interest in SIRI you may find it interesting to know that GNK, IX and NVCN are all extremely risky investment candidates that must be evaluated carefully. Investors with low risk profile are better off avoiding them till their performance becomes more consistent.

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