JUMEI INTERNATIONAL HOLDING LTD (FOREIGN)

2.22 +0.03 (+1.37%) Buy

Don't profit book on JMEI now, it delivered great returns

13 min read

JMEI outperformed today. On a longer term basis, investors in JUMEI INTERNATIONAL HOLDING LTD (Foreign) made -0.13% per day. Friday's performance of +1.37% was a outperformance compared to it's daily average.

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JMEI showed a bullish trend over the last 3 months. During this period JMEI surged by +2.78% and saw a maximum drawdown of -19.41%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in JMEI till volatility reduces and a clear trend emerges.

Trend

JMEI has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 5 Jan, 2016 to 24 Aug, 2018. Over the last 2 years 11 months and 10 days, JMEI underperformed the SP500 index on 55% days.

JMEI was profitable on 53% days in the last three months. During this time, it delivered on average +0.08% per day. It delivered it's best daily return of +7.22%, during this period, on Thursday, 1 Nov, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 6 Dec, 2018 and went on till 14 Dec, 2018. This bullish trend returned +7.05% to investors.

During the last year JMEI had 5 profitable months and 7 loss making months. JMEI returned profits in fewer months than SP500 index. JMEI was also a more risky investment than SP500 index as it's worst month in the last year, Jul 2018, returned -17.55% compared to -7.28% returned by SP500 index in Oct 2018. JMEI had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Apr 2018 to Aug 2018) during which period it delivered -33.41%.

"Under capitalism, man exploits man. Under communism, it's just the opposite.

JMEI 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 JMEI's volatility from 25 Sep, 2018 to 25 Oct, 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 JMEI has significant negative skewness in it's return distribution. This indicates that JMEI is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in JMEI you may find it interesting to know that I and ECYT have both shown remarkable performance this year and deserve to be on every investors' watchlist.

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