UNITED TECHNOLOGIES CORP

115.78 +0.47 (+0.41%) Sell

Don't give up on UTX now, it gave a fairly good return

14 min read

UNITED TECHNOLOGIES CORP is looking better than most other alternatives today. It grew by +0.41% to close at 115.78. It's recent 5 day performance has been -2.94%, -0.38%, -0.34%, +0.61% and -0.4%.

[Themes containing UTX]

UTX showed a strong down trend over the last 3 months. During this period UTX lost -17.59% and saw a maximum drawdown of -18.84%. There were 2 short signals during this period that returned a cumulative of +9.56% to investors.

Trend

UTX has been underperforming the SP500 index in recent time, after having outperformed till 11 Jul, 2017. Over the last 2 years 11 months and 14 days, UTX underperformed the SP500 index on 48% days. Which indicates that on days UTX underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months UTX was mostly loss making and delivered on average -0.29% per day. It's best return during this period (of +2.86%) was on Tuesday, 23 Oct, 2018. While it's worst loss in the same period (of -6.11%) was on Wednesday, 24 Oct, 2018. There was initially a bullish trend during this period which started on 27 Sep, 2018 and went on till 2 Oct, 2018. The bullish trend returned +1.35% to investors. This was followed by a bearish trend that started on 17 Oct, 2018 and ended on 22 Oct, 2018. This bearish trend lost -4.68% of investor capital.

UTX had 5 profitable and 7 loss making months over the last year. During the last year, UTX underperformed SP500 index on monthly return basis. UTX was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -11.86% compared to -7.75% returned by SP500 index in Dec 2018. UTX 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 UTX and SP500 index significantly outperform during months when quarterly/annual results are announced.

Money never made a man happy yet, nor will it. The more a man has, the more he wants. Instead of filling a vacuum, it makes one.
-- Benjamin Franklin

UTX 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 UTX's volatility from 3 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 UTX has significant positive skewness in it's return distribution. This indicates that investors can expect UTX to recover from drawdowns quickly. Which makes UTX a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in UTX derivatives at this moment can consider 'Long Straddle' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in UTX), two instruments that have delivered similar performance as UTX are GTY and SUI. They are suitable as good alternative investment candidates that can diversify your portfolio.

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