Joy for ATHM investors as it delivers great returns
11 Dec, 201813 min read
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AUTOHOME INC. (Foreign) ranked among the best performers today. It delivered +5.36% to close at 92.97. During the last week it delivered +7.53% and saw a maximum drawdown of -0.3% before bouncing back.
ATHM is currently in a bullish trend. Over the last three months 3 bullish signals in ATHM have generated a profit of +13.32% for investors.
ATHM has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 19 Jul, 2016 to 15 Jun, 2018. Over the last 2 years 11 months and 7 days, ATHM outperformed the SP500 index on 52% days.
During the last three months ATHM was mostly profitable and delivered on average +0.45% per day. It's best return during this period (of +9.46%) was on Tuesday, 13 Nov, 2018. While it's worst loss in the same period (of -9.28%) was on Thursday, 8 Nov, 2018. The longest stort-term trend during this period was 5 losing days, which started on 4 Oct, 2018 and ended on 10 Oct, 2018. This bearish trend lost -11.06% of investor capital.
The last 12 months saw ATHM's investors making profits in 6 months and incurring losses in 6 months. ATHM was less consistent in delivering monthly returs than SP500 index. ATHM significantly outperformed SP500 index in Jan 2018, when it returned +16.22% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ATHM had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Jun 2018 to Oct 2018) during which period it delivered -38.43%. It is interesting to note that both ATHM and SP500 index significantly outperform during months when quarterly/annual results are announced.
The stock market is filled with individuals who know the price of everything, but the value of nothing.
-- Philip Arthur Fisher
ATHM 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 ATHM's volatility from 27 Sep, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that ATHM 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.
ATHM has more chance of extreme outcomes than the SP500 index. Therefore, ATHM must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than ATHM.
On a general note (since you are interested in ATHM), three instruments that deserve special mention are DLPH, APRN and AMRH. They have all outperformed the market and must be closely watched for investment opportunities.
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