54.21 -0.62 (-1.15%) Sell

Don't buy SJW now, it is a volatile investment

13 min read

SJW GROUP delivered massive losses on Friday. It fell by -1.15% to close at 54.21. It is currently trading -20% below it's 52 week high of 68.15.

[Themes containing SJW]

SJW showed a bearish trend over the last 3 months. During this period SJW fell by -7.49% and saw a maximum drawdown of -17.93%. There were 3 short signals during this period that returned a cumulative of +2.24% to investors.


SJW has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 4 Jan, 2016 to 29 Nov, 2017. Over the last 2 years 11 months and 3 days, SJW outperformed the SP500 index on 53% days.

SJW was profitable on 50% days in the last three months. During this time, it delivered on average -0.1% per day. It delivered it's worst daily return of -9.06%, during this period, on Tuesday, 27 Nov, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 18 Oct, 2018 and went on till 25 Oct, 2018. This bullish trend returned +5.83% to investors.

During the last year SJW had 5 profitable months and 7 loss making months. SJW returned profits in fewer months than SP500 index. SJW significantly outperformed SP500 index in Apr 2018, when it returned +16.97% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. SJW had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both SJW and SP500 index significantly outperform during months when quarterly/annual results are announced.

I never dreamed about success, I worked for it.
-- Estee Lauder

SJW is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant fall in SJW's volatility from 10 Sep, 2018 to 2 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 SJW 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 SJW. Therefore, SP500 must receive a lower allocation than SJW in your portfolio. SP500 index usually has shorter drawdown period than SJW.

Based on your interest in SJW you may find it interesting to know that NFEC has shown remarkable performance this year and deserves to be on every investors' watchlist.

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