WABCO HOLDINGS INC.

107.64 +1.07 (+0.99%) Sell

Waiting to invest in WBC? Consider it, because it showed marginal outperformance

13 min read

WBC showed marginal outperformance today. On a longer term basis, investors in WABCO HOLDINGS INC. made -0.02% per day. Wednesday's performance of +0.99% was a outperformance compared to it's daily average.

[Themes containing WBC]

WBC showed a bearish trend over the last 3 months. During this period WBC delivered -7.3% and saw a maximum drawdown of -15.1%. There were 2 short signals during this period that returned a cumulative of +0.42% to investors.

Trend

WBC has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 19 Oct, 2017 to 17 Oct, 2018. Over the last 2 years 11 months and 8 days, WBC underperformed the SP500 index on 46% days. Which indicates that on days WBC underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months WBC was mostly loss making and delivered on average -0.1% per day. It's best return during this period (of +3.22%) was on Wednesday, 19 Sep, 2018. While it's worst loss in the same period (of -6.46%) was on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 6 losing days, which started on 3 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -12.78% of investor capital.

The last 12 months saw WBC's investors making profits in 3 months and incurring losses in 9 months. WBC was less consistent in delivering monthly returs than SP500 index. WBC significantly outperformed SP500 index in Nov 2018, when it returned +13.03% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. WBC had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -24.23%. It is interesting to note that both WBC and SP500 index significantly outperform during months when quarterly/annual results are announced.

It's how you deal with failure that determines how you achieve success.
-- David Feherty

WBC is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in WBC's volatility from 13 Sep, 2018 to 10 Dec, 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 WBC has significant positive skewness in it's return distribution. This indicates that investors can expect WBC to recover from drawdowns quickly. Which makes WBC a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in WBC you may find it interesting to know that ECYT, I and TPNL have all shown remarkable performance this year and deserve to be on every investor's watchlist.

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