CHANGYOU.COM LTD (FOREIGN)

20.25 +1.12 (+5.52%) Buy

CYOU continues to mint money for it's investors

13 min read

CHANGYOU.COM LTD (Foreign) outperformed the broader market on Tuesday. It increased by +5.52% to close at 20.25. On a day when the overall market breadth was 35%, it closed higher than 68% of the market. In comparison, the benchmark SP500 index closed today at -0.0004%.

[Themes containing CYOU]

CYOU showed a strong bullish trend over the last 3 months. During this period CYOU increased by +49.01% and saw a maximum drawdown of -10.45%. There was a long signal during this period which returned +38.51%.

Trend

CYOU has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 4 Aug, 2017 to 2 Oct, 2018. Over the last 2 years 11 months and 7 days, CYOU underperformed the SP500 index on 51% days.

During the last three months CYOU delivered losses on 53% days. However, it still managed to end this period in a profit. It's best return during this period (of +13.16%) was on Tuesday, 6 Nov, 2018. While it's worst loss in the same period (of -7.2%) was on Monday, 12 Nov, 2018. The longest stort-term trend during this period was 7 losing days, which started on 20 Sep, 2018 and ended on 28 Sep, 2018. This bearish trend lost -6.12% of investor capital.

During the last year CYOU had 3 profitable months and 9 loss making months. CYOU returned profits in fewer months than SP500 index. CYOU significantly outperformed SP500 index in Nov 2018, when it returned +46.86% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CYOU had a longer winning streak of losing months than SP500 index. It went down in 9 straight months (from Jan 2018 to Sep 2018) during which period it delivered -92.8%.

"I'm involved in the stock market, which is fun and, sometimes, very painful.

CYOU 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 CYOU's volatility from 1 Oct, 2018 to 5 Nov, 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 CYOU has significant positive skewness in it's return distribution. This indicates that investors can expect CYOU to recover from drawdowns quickly. Which makes CYOU a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in CYOU), three large cap instruments that deserve special mention are MSFT, V and CSCO. They have all outperformed the market and must be closely watched for investment opportunities.

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