80.17 -1.06 (-1.32%) Sell

WP is a falling knife, continues to bleed every investor trying to catch it

13 min read

WORLDPAY, INC. is a falling knife that can bleed you if you catch it today. It delivered -1.32% to close at 80.17. It's recent 5 day performance has been +0.45%, +0.02%, -1.05%, -0.2% and -1.36%.

[Themes containing WP]

WP showed a strong bearish trend over the last 3 months. During this period WP delivered -18.05% and saw a maximum drawdown of -22.95%. There was a short signal during this period which returned +12.61%.


WP has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 21 Jan, 2016 to 3 Oct, 2018. Over the last 2 years 11 months and 10 days, WP outperformed the SP500 index on 53% days.

During the last three months WP was mostly loss making and delivered on average -0.29% per day. It's best return during this period (of +5.41%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -6.68%) was on Wednesday, 10 Oct, 2018. The longest stort-term trend during this period was 5 losing days, which started on 8 Nov, 2018 and ended on 14 Nov, 2018. This bearish trend lost -12.69% of investor capital.

The last 12 months saw WP's investors making profits in 8 months and incurring losses in 4 months. During the last year, WP and SP500 index had the same number of profitable months. WP significantly outperformed SP500 index in Aug 2018, when it returned +18.49% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. WP had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

Persist - don't take no for an answer. If you're happy to sit at your desk and not take any risk, you'll be sitting at your desk for the next 20 years.
-- David Rubenstein

WP 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 WP's volatility from 18 Sep, 2018 to 20 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 WP 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 WP. Therefore, SP500 must receive a lower allocation than WP in your portfolio. SP500 index usually has shorter drawdown period than WP.

Based on your interest in WP you may find it interesting to know that MFG and CHRW have both performed similar to WP and can be considered by investors as alternative investment options.

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