49.17 -0.68 (-1.38%) Sell

Looking to invest in QTWO? Avoid at the moment as it significantly underperformed

13 min read

Q2 HOLDINGS, INC. significantly underperformed on Friday. It fell by -1.38% to close at 49.17. It is currently trading -25% below it's 52 week high of 65.8.

[Themes containing QTWO]

QTWO showed a strong bearish trend over the last 3 months. During this period QTWO fell by -23.53% and saw a maximum drawdown of -26.7%. There was a short signal during this period which returned +10.91%.


QTWO has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 8 Feb, 2016 to 7 Sep, 2018. Over the last 2 years 11 months and 10 days, QTWO outperformed the SP500 index on 54% days.

QTWO returned losses on 56% days in the last three months. During this time, it delivered on average -0.4% per day. It delivered it's worst daily return of -6.97%, during this period, on Monday, 19 Nov, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 21 Nov, 2018 and went on till 30 Nov, 2018. This bullish trend returned +13.42% to investors.

During the last year QTWO had 7 profitable months and 5 loss making months. QTWO returned profits in fewer months than SP500 index. QTWO significantly outperformed SP500 index in May 2018, when it returned +16.04% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. QTWO had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year. It is interesting to note that both QTWO and SP500 index significantly outperform during months when quarterly/annual results are announced.

"If investing is entertaining, if you're having fun, you're probably not making any money. Good investing is boring.

QTWO 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 QTWO's volatility from 17 Sep, 2018 to 7 Dec, 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 QTWO 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 QTWO. Therefore, SP500 must receive a lower allocation than QTWO in your portfolio. SP500 index usually has shorter drawdown period than QTWO.

Based on your interest in QTWO you may find it interesting to know that V, MSFT and AMZN are large caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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