21.72 +0.17 (+0.79%) Buy

SOHU continues to mint money for it's investors

13 min read

SOHU.COM LTD (Foreign) was among the best performers today. It returned +0.79% to close at 21.72. It's recent 5 day performance has been -3.23%, +1.5%, +2.96%, -2.25% and +4.56%.

[Themes containing SOHU]

SOHU is currently in a up trend. Over the last three months 2 bullish signals in SOHU have generated a profit of +0.46% for investors.


SOHU has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 7 days, SOHU underperformed the SP500 index on 52% days.

During the last three months SOHU was mostly profitable and delivered on average +0.12% per day. It's best return during this period (of +10.59%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -8.18%) was on Tuesday, 2 Oct, 2018. There was initially a bullish trend during this period which started on 10 Oct, 2018 and went on till 15 Oct, 2018. The bullish trend returned +17.86% to investors. This was followed by a bearish trend that started on 16 Oct, 2018 and ended on 19 Oct, 2018. This bearish trend lost -13.24% of investor capital.

On monthly basis, SOHU delivered losses in more months over the last year, than profits. SOHU delivered profits less regularly than SP500 index. SOHU was also a more risky investment than SP500 index as it's worst month in the last year, Jul 2018, returned -28.95% compared to -7.28% returned by SP500 index in Oct 2018. SOHU had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Jun 2018 to Oct 2018) during which period it delivered -63.05%.

Trading mastery is a state of complete acceptance of probability, not a state of fight it.
-- Yvan Byeajee

SOHU is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in SOHU's volatility from 27 Sep, 2018 to 16 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that SOHU has positive skewness in it's return distribution. This indicates that investors can expect SOHU to make attempts to recover from drawdowns quickly. Which makes SOHU a good candidate for momentum based trading on short-term bullish trends or counter-trends.

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

Based on your interest in SOHU you may find it interesting to know that HEAR, TNDM and PRQR have all shown remarkable performance this year and deserve to be on every investor's watchlist.

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