COF - The Best Time to Buy or Sell Capital One Financial Corp.
Chapter IV: A look at Traditional Seasonal Analysis of Capital One Financial Corp. Historical Prices identifies the best and worst months to be invested.
Timing Seasonal Trends in COF Common Stock.
Capital One Financial Corp. does not fit the typical Seasonal pattern. Usually, the lowest prices occur in the Fall Months. COFshows a strong seasonal bias of 10.34 percent, when averaged over the last 16 years. For this chart, price plots for each year are traced on top of each other. Each month's value is adjusted to the mean price for the particular year. The orange line represents the average monthy price expressed as a portion of the annual price.
COF speculators might well avoid the month of February. Here, the profitability of the month is defined as the percentage change between the mean price on the first day of the month and the mean price on the last day of the month. So the figures displayed here refer to the average change during each month, rather than changes between months. A quick 7.4 percent gain has rewarded those who have speculated during the month of March. |
Best Months For Short Term Investing in Capital One Financial Corp. Common Stock.
The 'Monthly Profitability' discussed above applies to holdings during the course of a single month. Another, perhaps more realistic evaluation is the one charted here.
Here the value evaluated is the highest price reached at anytime during the next quarter. Capital One Financial Corp. speculators who have taken positions starting in March gain 31.65 percent, judged by the maximum price attained during the next three months. |
This plot of the average monthly price as a proportion of the average yearly price removes the year-to-year secular trend. However the within-year trend is still intact, so it is expected that the December value might be higher than the January average, for a healthy company. The potential gain has been 10.34 percent from February to the next June. This is 31.02 percent when converted to an annual return. Investing 'against the tide' of the seasonal trend can cost an annualized 15.51 percent. |
Before making any decisions based on the standard 12 Month Seasonal Calendar, be sure to check the characteristics of the 24 Month Political Election Calendar. Research shows that many characteristics of the traditional seasonal averages are actually induced by events in the 24 month political cycle, so the characteristics of even versus odd numbered years may be quite distinct.
For Members: More Market Timing Analysis of Capital One Financial Corp.
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