UTILITIES THEME investors looking to preserve capital

~UTILITIES was among the worst performers today. On a longer term basis, investors in Utilities made +0.02% per day. Tuesday's performance of -1.43% was a significant underperformance compared to it's daily average.

[Theme constituents]

Buy-and-Hold investors in ~UTILITIES experienced a maximum drawdown of -5.79% over the last three months. It returned +0.42% during this flat trending period. There were both Long and Short signals during this period, while the long signals were marginally more profitable than the short signals.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

~UTILITIES has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 14 days, ~UTILITIES underperformed the SP500 index on 48% days. Which indicates that on days ~UTILITIES underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ~UTILITIES was mostly profitable and delivered on average +0.01% per day. It's best return during this period (of +3.05%) was on Friday, 16 Nov, 2018. While it's worst loss in the same period (of -3.11%) was on Monday, 17 Dec, 2018. There was initially a bearish trend during this period which started on 24 Sep, 2018 and went on till 26 Sep, 2018. The trend delivered -3.16% losses to investors. This was followed by a bullish trend that started on 15 Oct, 2018 and ended on 19 Oct, 2018. This bullish trend delivered +3.49% to investors.

On monthly basis, ~UTILITIES delivered profits in more months over the last year, than losses. ~UTILITIES delivered profits less regularly than SP500 index. ~UTILITIES was also a less risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -5.02% compared to -7.75% returned by SP500 index in Dec 2018. ~UTILITIES had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both ~UTILITIES and SP500 index significantly outperform during months when quarterly/annual results are announced.

What we now call 'finance' is, I hold, an intellectual perversion of what began as warm human love.
-- Robert Graves

~UTILITIES 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 ~UTILITIES's volatility from 19 Sep, 2018 to 12 Dec, 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 ~UTILITIES has significant positive skewness in it's return distribution. This indicates that investors can expect ~UTILITIES to recover from drawdowns quickly. Which makes ~UTILITIES a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in ~UTILITIES), three instruments that deserve special mention are AMRH, TYHT and AYTU. They have all outperformed the market and must be closely watched for investment opportunities.