9.49 -0.16 (-1.66%) Sell

Prayers for VG investors as it was among the worst performers

13 min read

VONAGE HOLDINGS CORP significantly underperformed on Friday. It delivered -1.66% to close at 9.49 which is it's 52 week low, down -34% from it's 52 week high.

[Themes containing VG]

VG is currently in a bearish trend. The current bearish signal has generated a profit of +28.7% for investors in the last three months.


VG has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 12 May, 2016 to 17 Aug, 2018. Over the last 2 years 11 months and 10 days, VG outperformed the SP500 index on 50% days. Which indicates that on days VG outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

During the last three months VG was mostly loss making and delivered on average -0.58% per day. It's best return during this period (of +4.17%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -12.52%) was on Friday, 2 Nov, 2018. The longest stort-term trends during this period were 5 profitable and losing days. The bullish trend (which returned +7.62%) started on 20 Sep, 2018 and went on till 26 Sep, 2018 while the bearish trend (which returned -10.85%) started on 4 Oct, 2018 and went on till 10 Oct, 2018.

The last 12 months saw VG's investors making profits in 6 months and incurring losses in 6 months. VG was less consistent in delivering monthly returs than SP500 index. VG was also a more risky investment than SP500 index as it's worst month in the last year, Nov 2018, returned -20.14% compared to -7.28% returned by SP500 index in Oct 2018. VG had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year. It is interesting to note that both VG and SP500 index significantly outperform during months when quarterly/annual results are announced.

We make a living by what we get, but we make a life by what we give.
-- Winston Churchill

VG 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 VG's volatility from 18 Sep, 2018 to 2 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 VG 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 VG. Therefore, SP500 must receive a lower allocation than VG in your portfolio. SP500 index usually has shorter drawdown period than VG.

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

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