21VIANET GROUP, INC. (FOREIGN)

9.5 +0.07 (+0.74%) Buy

Want to invest in VNET? Consider as it delivered stellar performance

13 min read

VNET delivered stellar performance today. On a longer term basis, investors in 21VIANET GROUP, INC. (Foreign) made +0.06% per day. Thursday's performance of +0.74% was a significant outperformance compared to it's daily average.

[Themes containing VNET]

VNET showed a strong up trend over the last 3 months. During this period VNET gained +11.11% and saw a maximum drawdown of -22.12%. There was a long signal during this period which returned +11.11%.

Trend

VNET has been underperforming the SP500 index in recent time, after having outperformed till 6 Jan, 2016. Over the last 2 years 11 months and 9 days, VNET underperformed the SP500 index on 51% days.

VNET returned losses on 57% days in the last three months. During this time, it delivered on average +0.26% per day. It delivered it's best daily return of +13.66%, during this period, on Wednesday, 3 Oct, 2018. There was initially a bullish trend during this period which started on 17 Sep, 2018 and went on till 21 Sep, 2018. The bullish trend returned +19.91% to investors. This was followed by a bearish trend that started on 16 Nov, 2018 and ended on 21 Nov, 2018. This bearish trend lost -11.9% of investor capital.

On monthly basis, VNET delivered profits in more months over the last year, than losses. VNET delivered profits less regularly than SP500 index. VNET significantly outperformed SP500 index in May 2018, when it returned +56.93% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. VNET had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

"Under capitalism, man exploits man. Under communism, it's just the opposite.

VNET 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 VNET's volatility from 19 Sep, 2018 to 4 Oct, 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 VNET has significant negative skewness in it's return distribution. This indicates that VNET is very risky for short-term investment and can significantly underperform for long durations.

Investors trading in VNET derivatives at this moment can consider 'Long Strangle' options strategy to receive better risk-adjusted returns.

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

Based on your interest in VNET you may find it interesting to know that DFBG and NFEC have both shown remarkable performance this year and deserve to be on every investors' watchlist.

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