AT&T INC. has destroyed investor wealth on Tuesday. It fell by -0.37% to close at 29.75. It is currently trading -24% below it's 52 week high of 39.18.
Buy-and-Hold investors in T experienced a maximum drawdown of -14.74% over the last three months. It fell by -10.85% 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 +3.99%.
T has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 27 Jun, 2016 to 25 Jul, 2018. Over the last 2 years 11 months and 14 days, T underperformed the SP500 index on 48% days. Which indicates that on days T underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
T was profitable on 50% days in the last three months. During this time, it delivered on average -0.17% per day. It delivered it's worst daily return of -8.06%, during this period, on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 5 losing days, which started on 4 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -6.48% of investor capital.
During the last year T had 2 profitable months and 10 loss making months. T returned profits in fewer months than SP500 index. T was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -8.39% compared to -7.75% returned by SP500 index in Dec 2018. T had a longer winning streak of losing months than SP500 index. It went down in 8 straight months (from Jan 2018 to Aug 2018) during which period it delivered -17.18%.
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T 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 surge in T's volatility from 9 Oct, 2018 to 29 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 T has significant positive skewness in it's return distribution. This indicates that investors can expect T to recover from drawdowns quickly. Which makes T a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Investors trading in T derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.
Based on your interest in T you may find it interesting to know that ABMD is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.
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