31.68 +0.07 (+0.22%) Sell

Are you evaluating investing in UBSI? Consider as it performed better than the broader market

13 min read

UNITED BANKSHARES INC was among the best performers on Monday. It returned +0.22% to close at 31.68. On a day when the overall market breadth was 34%, it closed higher than 14% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing UBSI]

UBSI showed a strong down trend over the last 3 months. During this period UBSI lost -16.41% and saw a maximum drawdown of -17.57%. There were 2 short signals during this period that returned a cumulative of +11.66% to investors.


UBSI has been underperforming the SP500 index in recent time, after having outperformed till 9 Dec, 2016. Over the last 2 years 11 months and 10 days, UBSI underperformed the SP500 index on 48% days. Which indicates that on days UBSI underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months UBSI was mostly loss making and delivered on average -0.27% per day. It's best return during this period (of +3.27%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -5.41%) was on Tuesday, 4 Dec, 2018. There was initially a bearish trend during this period which started on 18 Oct, 2018 and went on till 24 Oct, 2018. The trend delivered -8.46% losses to investors. This was followed by a bullish trend that started on 21 Nov, 2018 and ended on 30 Nov, 2018. This bullish trend delivered +5.6% to investors.

UBSI had 5 profitable and 7 loss making months over the last year. During the last year, UBSI underperformed SP500 index on monthly return basis. UBSI was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -12.61% compared to -7.28% returned by SP500 index in Oct 2018. UBSI had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered -5.39%. It is interesting to note that both UBSI and SP500 index significantly outperform during months when quarterly/annual results are announced.

Never spend your money before you have earned it.
-- Thomas Jefferson

UBSI is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in UBSI's volatility from 20 Sep, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that UBSI has significant positive skewness in it's return distribution. This indicates that investors can expect UBSI to recover from drawdowns quickly. Which makes UBSI a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in UBSI you may find it interesting to know that RHT and ABMD are both mid caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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