XO GROUP INC.

34.98 0.0 (0.0%) Buy

XOXO investors not showing any loss of confidence as it pauses to catch its breath

13 min read

XO GROUP INC. trailed the broader market today. It returned 0.0% to close at 34.98. During the last week it gained +0.89% and saw a maximum drawdown of -0.03% before bouncing back.

[Themes containing XOXO]

Buy-and-Hold investors in XOXO experienced a maximum drawdown of -2.78% over the last three months. It gained +24.57% during this strong 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 +0.2%.

Trend

XOXO has been outperforming the SP500 index in recent time. XOXO is currently at it's peak outperformance to the SP500 index and can be considered for investment. Over the last 2 years 11 months and 10 days, XOXO outperformed the SP500 index on 51% days.

XOXO returned losses on 54% days in the last three months. During this time, it delivered on average +0.4% per day. It delivered it's best daily return of +26.3%, during this period, on Tuesday, 25 Sep, 2018. There was initially a bearish trend during this period which started on 7 Nov, 2018 and went on till 13 Nov, 2018. The trend delivered -0.96% losses to investors. This was followed by a bullish trend that started on 6 Dec, 2018 and ended on 12 Dec, 2018. This bullish trend delivered +1.12% to investors.

On monthly basis, XOXO delivered profits in more months over the last year, than losses. XOXO delivered profits in more months than SP500 index. XOXO significantly outperformed SP500 index in May 2018, when it returned +49.72% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. XOXO had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year.

I think that stocks have been this tremendous, tremendous equalizer for people in this country. Guys who can't make a lot of money at their jobs have been able to make a lot of money in the stock market.
-- Jim Cramer

XOXO 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 fall in XOXO's volatility from 21 Sep, 2018 to 14 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 XOXO 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.

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

On a general note (since you are interested in XOXO), three mid cap instruments that deserve special mention are LULU, SQ and ABMD. They have all outperformed the market and must be closely watched for investment opportunities.

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