WESTERN GAS EQUITY PARTNERS, LP

29.38 -0.15 (-0.51%) Sell

The party never started for WGP investors as it ranked among the worst performers

13 min read

WESTERN GAS EQUITY PARTNERS, LP delivered massive losses on Tuesday. It returned -0.51% to close at 29.38. It is currently trading -30% below it's 52 week high of 42.51.

[Themes containing WGP]

WGP is currently in a down trend. The current bearish signal has generated a profit of +17.19% for investors in the last three months.

Trend

WGP has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 7 days, WGP underperformed the SP500 index on 49% days. Which indicates that on days WGP underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months WGP was mostly loss making and delivered on average -0.27% per day. It's best return during this period (of +11.64%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -6.15%) was on Thursday, 8 Nov, 2018. There was initially a bullish trend during this period which started on 3 Oct, 2018 and went on till 9 Oct, 2018. The bullish trend returned +6.83% to investors. This was followed by a bearish trend that started on 17 Oct, 2018 and ended on 31 Oct, 2018. This bearish trend lost -12.13% of investor capital.

On monthly basis, WGP delivered profits and losses in equal number of months. WGP delivered profits less regularly than SP500 index. WGP was also a more risky investment than SP500 index as it's worst month in the last year, Sep 2018, returned -11.58% compared to -7.28% returned by SP500 index in Oct 2018. WGP had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -27.84%. It is interesting to note that both WGP and SP500 index significantly outperform during months when quarterly/annual results are announced.

It's not the situation, but whether we react (negative) or respond (positive) to the situation that's important.
-- Zig Ziglar

WGP 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 WGP's volatility from 12 Sep, 2018 to 8 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

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

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

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

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