4.08 -0.15 (-3.77%) Sell

KNDI is a falling knife, continues to bleed every investor trying to catch it

13 min read

KANDI TECHNOLOGIES GROUP, INC. delivered massive losses on Monday. It fell by -3.77% to close at 4.08. On a day when the overall market breadth was 34%, it closed higher than 84% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing KNDI]

KNDI showed a strong bearish trend over the last 3 months. During this period KNDI fell by -11.3% and saw a maximum drawdown of -36.51%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in KNDI till volatility reduces and a clear trend emerges.


KNDI has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 4 Jan, 2016 to 13 Sep, 2018. Over the last 2 years 11 months and 10 days, KNDI underperformed the SP500 index on 55% days.

During the last three months KNDI was mostly loss making and delivered on average -0.07% per day. It's best return during this period (of +16.5%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -11.11%) was on Thursday, 4 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 15 Oct, 2018 and ended on 22 Oct, 2018. This bearish trend lost -15.25% of investor capital.

During the last year KNDI had 4 profitable months and 8 loss making months. KNDI returned profits in fewer months than SP500 index. KNDI was also a more risky investment than SP500 index as it's worst month in the last year, Jun 2018, returned -22.73% compared to -7.28% returned by SP500 index in Oct 2018. KNDI had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Jan 2018 to Mar 2018) during which period it delivered -36.86%.

"A bull market is very much like being in love. You don't realise its value till It's gone.

KNDI 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 fall in KNDI's volatility from 18 Sep, 2018 to 30 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 KNDI has significant negative skewness in it's return distribution. This indicates that KNDI is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in KNDI), V is a large cap that deserves to be closely tracked for investment opportunities.

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