150.22 -2.46 (-1.64%) Sell

Are you evaluating investing in WEX? Avoid as it was among the worst performers

13 min read

WEX INC. was among the worst performers on Tuesday. It lost -1.64% to close at 150.22. It is currently trading -25% below it's 52 week high of 200.76.

[Themes containing WEX]

WEX showed a strong down trend over the last 3 months. During this period WEX lost -24.65% and saw a maximum drawdown of -25.17%. There was a short signal during this period which returned +24.65%.


WEX has been underperforming the SP500 index in recent time, after having outperformed till 23 Jul, 2018. Over the last 2 years 11 months and 7 days, WEX outperformed the SP500 index on 55% days.

During the last three months WEX was mostly loss making and delivered on average -0.43% per day. It's best return during this period (of +4.91%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -5.41%) was on Wednesday, 10 Oct, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 11 Oct, 2018. The trend delivered -10.42% losses to investors. This was followed by a bullish trend that started on 12 Oct, 2018 and ended on 17 Oct, 2018. This bullish trend delivered +8.1% to investors.

WEX had 7 profitable and 5 loss making months over the last year. During the last year, WEX underperformed SP500 index on monthly return basis. WEX was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -11.96% compared to -7.28% returned by SP500 index in Oct 2018. WEX had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

"You have venture capitalists. We view them as experts who also help finance your company and give directions and also some pretty candid discussions about what you have to do better.

WEX 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 WEX's volatility from 4 Oct, 2018 to 5 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that WEX has significant positive skewness in it's return distribution. This indicates that investors can expect WEX to recover from drawdowns quickly. Which makes WEX 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 WEX. Therefore, SP500 must receive a lower allocation than WEX in your portfolio. SP500 index usually has shorter drawdown period than WEX.

Based on your interest in WEX you may find it interesting to know that EPIX and OPNT are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).

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