XEROX CORP

25.51 -1.08 (-4.24%) Sell

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

13 min read

XEROX CORP ranked among the worst performers on Friday. It fell by -4.24% to close at 25.51. On a day when the overall market breadth was 35%, it closed higher than 66% of the market. In comparison, the benchmark SP500 index closed today at -0.0233%.

[Themes containing XRX]

XRX is currently in a bearish trend. The previous short signal in XRX has not been profitable for investors in general. If you are short on XRX at current levels please make sure that your allocation is limited and that your portfolio is well diversified.

Trend

XRX has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 31 Mar, 2016 to 25 Jul, 2018. Over the last 2 years 11 months and 3 days, XRX underperformed the SP500 index on 52% days.

During the last three months XRX delivered profits on 53% days. However, it still managed to end this period in a loss. It's best return during this period (of +3.37%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -4.67%) was on Tuesday, 20 Nov, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 10 Sep, 2018 and went on till 17 Sep, 2018. This bullish trend returned +3.65% to investors.

During the last year XRX had 5 profitable months and 7 loss making months. XRX returned profits in fewer months than SP500 index. XRX significantly outperformed SP500 index in Jan 2018, when it returned +16.21% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. XRX had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both XRX and SP500 index significantly outperform during months when quarterly/annual results are announced.

An investment in knowledge pays the best interest.
-- Benjamin Franklin

XRX 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 XRX's volatility from 10 Sep, 2018 to 24 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that XRX has significant positive skewness in it's return distribution. This indicates that investors can expect XRX to recover from drawdowns quickly. Which makes XRX 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 XRX. Therefore, SP500 must receive a lower allocation than XRX in your portfolio. XRX usually has shorter drawdown period than the SP500 index.

Based on your interest in XRX you may find it interesting to know that HQY and AAXN are both small caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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