BAOZUN INC. (FOREIGN)

36.15 -0.71 (-1.95%) Sell

BZUN investors hurt by serious losses

13 min read

BAOZUN INC. (Foreign) has destroyed investor wealth today. It fell by -1.95% to close at 36.15. During the last week it surged by +6.51% and saw a maximum drawdown of -1.95% before bouncing back.

[Themes containing BZUN]

Buy-and-Hold investors in BZUN experienced a maximum drawdown of -37.99% over the last three months. It fell by -18.93% during this strong bearish trending period. There were no long signals during this period, where the short signal generated good profits of +18.93% for investors.

Trend

BZUN has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 9 May, 2016 to 12 Jun, 2018. Over the last 2 years 11 months and 10 days, BZUN outperformed the SP500 index on 50% days. Which indicates that on days BZUN outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

BZUN was profitable on 50% days in the last three months. During this time, it delivered on average -0.22% per day. It delivered it's worst daily return of -20.68%, during this period, on Monday, 12 Nov, 2018. The longest stort-term trend during this period was 8 losing days, which started on 1 Oct, 2018 and ended on 10 Oct, 2018. This bearish trend lost -27.96% of investor capital.

During the last year BZUN had 6 profitable months and 6 loss making months. BZUN returned profits in fewer months than SP500 index. BZUN significantly outperformed SP500 index in May 2018, when it returned +33.31% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. BZUN had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Aug 2018 to Nov 2018) during which period it delivered -43.44%. It is interesting to note that both BZUN and SP500 index significantly outperform during months when quarterly/annual results are announced.

Money is multiplied in practical value depending on the number of W's you control in your life: what you do, when you do it, where you do it, and with whom you do it.
-- Timothy Ferriss

BZUN 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 BZUN's volatility from 27 Sep, 2018 to 1 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that BZUN 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.

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

Based on your interest in BZUN you may find it interesting to know that AYTU has shown remarkable performance and deserves to be on every investors' watchlist.

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