924.38 +0.38 (+0.04%) Buy

WTM continues it's uptrend, although on a weaker note

13 min read

WHITE MOUNTAINS INSURANCE GROUP LTD ranked better than it's peers on Friday. It delivered +0.04% to close at 924.38. On a day when the overall market breadth was 35%, it closed higher than 11% of the market. In comparison, the benchmark SP500 index closed today at -0.0233%.

[Themes containing WTM]

WTM is currently in a bullish trend. The previous long signal in WTM has not been profitable for investors in general. If you are invested in WTM at current levels please make sure that your allocation is limited and that your portfolio is well diversified.


WTM has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 2 Feb, 2017 to 26 Feb, 2018. Over the last 2 years 11 months and 3 days, WTM underperformed the SP500 index on 49% days. Which indicates that on days WTM underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months WTM delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +4.03%) was on Friday, 14 Sep, 2018. While it's worst loss in the same period (of -2.19%) was on Thursday, 11 Oct, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 13 Nov, 2018 and went on till 20 Nov, 2018. This bullish trend returned +3.78% to investors.

During the last year WTM had 8 profitable months and 4 loss making months. Profitable number of months of WTM and SP500 index were the same. WTM significantly outperformed SP500 index in Apr 2018, when it returned +5.83% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. WTM had a longer winning streak of profitable months than SP500 index. It went up in 7 straight months (from Mar 2018 to Sep 2018) during which period it delivered +15.85%.

A highly developed stock exchange cannot be a club for the cult of ethics.
-- Max Weber

WTM 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 fall in WTM's volatility from 17 Sep, 2018 to 9 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that WTM 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 WTM. Therefore, SP500 must receive a lower allocation than WTM in your portfolio. SP500 index usually has shorter drawdown period than WTM.

Based on your interest in WTM you may find it interesting to know that PG has delivered similar performance as WTM and can be considered as an alternative investment candidate (to WTM).

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{detail.name}} {{detail.trend}} 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter