ZILLOW GROUP, INC. ranked among the worst performers on Tuesday. It delivered -0.52% to close at 30.83. On a day when the overall market breadth was 34%, it closed higher than 75% of the market. In comparison, the benchmark SP500 index closed today at +0.01%.
Buy-and-Hold investors in Z experienced a maximum drawdown of -39.2% over the last three months. It delivered -30.11% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.
Z has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 8 Feb, 2016 to 15 Jun, 2018. Over the last 2 years 11 months and 14 days, Z outperformed the SP500 index on 55% days.
Z returned losses on 53% days in the last three months. During this time, it delivered on average -0.44% per day. It delivered it's worst daily return of -26.92%, during this period, on Wednesday, 7 Nov, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 20 Nov, 2018 and went on till 29 Nov, 2018. This bullish trend returned +31.42% to investors.
The last 12 months saw Z's investors making profits in 5 months and incurring losses in 7 months. Z was less consistent in delivering monthly returs than SP500 index. Z significantly outperformed SP500 index in May 2018, when it returned +20.29% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. Z had a longer winning streak of losing months than SP500 index. It went down in 6 straight months (from Jul 2018 to Dec 2018) during which period it delivered -58.94%.
"Once my ears were open to hearing mentions of 'Shark Tank', I was surprised by how many people in our world, even in our industry, tech and finance, loved the show.
Z is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in Z's volatility from 20 Sep, 2018 to 14 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 Z 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 Z derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.
Based on your interest in Z you may find it interesting to know that LBIX has delivered similar performance as Z and can be considered as an alternative investment candidate (to Z).
... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.
All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.
We want to empower investors with all the tools and analysis required by them to make a rational investment decision.If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute