VZ is a falling knife, continues to bleed every investor trying to catch it

VZ ranked among the worst performers today. On a longer term basis, investors in VERIZON COMMUNICATIONS INC made -0.01% per day. Tuesday's performance of -0.54% was a significant underperformance compared to it's daily average.

[Themes containing VZ]

Buy-and-Hold investors in VZ experienced a maximum drawdown of -8.24% over the last three months. It grew by +4.02% during this up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +4.58%.

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VZ has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 14 days, VZ underperformed the SP500 index on 47% days. Which indicates that on days VZ underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months VZ was mostly profitable and delivered on average +0.07% per day. It's best return during this period (of +4.06%) was on Tuesday, 23 Oct, 2018. While it's worst loss in the same period (of -3.55%) was on Monday, 3 Dec, 2018. There was initially a bullish trend during this period which started on 16 Oct, 2018 and went on till 24 Oct, 2018. The bullish trend returned +6.99% to investors. This was followed by a bearish trend that started on 12 Dec, 2018 and ended on 18 Dec, 2018. This bearish trend lost -5.54% of investor capital.

VZ had 8 profitable and 4 loss making months over the last year. During the last year, number of profitable months of VZ and SP500 index were the same. VZ was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -11.71% compared to -7.75% returned by SP500 index in Dec 2018. VZ 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 VZ and SP500 index significantly outperform during months when quarterly/annual results are announced.

It takes as much energy to wish as it does to plan.
-- Eleanor Roosevelt

VZ 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 VZ's volatility from 1 Oct, 2018 to 1 Nov, 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 VZ 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.

Investors trading in VZ derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in VZ), KEYS is a small cap that deserves to be closely tracked for investment opportunities.