WESTLAKE CHEMICAL CORP was among the worst performers on Friday. It delivered -3.54% to close at 64.63 which is it's 52 week low, down -47% from it's 52 week high.
Buy-and-Hold investors in WLK experienced a maximum drawdown of -25.23% over the last three months. It delivered -24.66% during this strong bearish trending period. There were no long signals during this period, where the short signal generated good profits of +24.66% for investors.
WLK has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 6 Jul, 2016 to 21 May, 2018. Over the last 2 years 11 months and 10 days, WLK underperformed the SP500 index on 50% days. Which indicates that on days WLK underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
WLK returned losses on 58% days in the last three months. During this time, it delivered on average -0.43% per day. It delivered it's best daily return of +6.12%, during this period, on Tuesday, 6 Nov, 2018. The longest stort-term trend during this period was 6 losing days, which started on 17 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -14.53% of investor capital.
The last 12 months saw WLK's investors making profits in 4 months and incurring losses in 8 months. WLK was less consistent in delivering monthly returs than SP500 index. WLK was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -14.74% compared to -7.28% returned by SP500 index in Oct 2018. WLK had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Jun 2018 to Oct 2018) during which period it delivered -46.53%. It is interesting to note that both WLK and SP500 index significantly outperform during months when quarterly/annual results are announced.
Many folks think they aren't good at earning money, when what they don't know is how to use it.
-- Frank A. Clark
WLK 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 WLK's volatility from 17 Sep, 2018 to 11 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that WLK has significant positive skewness in it's return distribution. This indicates that investors can expect WLK to recover from drawdowns quickly. Which makes WLK a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
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