70.55 +0.44 (+0.63%) Sell

Don't give up on WTS now, it gave a fairly good return

13 min read

WATTS WATER TECHNOLOGIES INC delivered good returns on Tuesday. It grew by +0.63% to close at 70.55. 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 -0.0004%.

[Themes containing WTS]

WTS showed a strong down trend over the last 3 months. During this period WTS returned -11.65% and saw a maximum drawdown of -18.71%. There were 4 short signals during this period that returned a cumulative of +3.22% to investors.


WTS has been underperforming the SP500 index in recent time, after having outperformed till 2 Aug, 2018. Over the last 2 years 11 months and 7 days, WTS outperformed the SP500 index on 51% days.

During the last three months WTS was mostly loss making and delivered on average -0.19% per day. It's best return during this period (of +5.04%) was on Monday, 5 Nov, 2018. While it's worst loss in the same period (of -4.06%) was on Wednesday, 10 Oct, 2018. There was initially a bullish trend during this period which started on 13 Sep, 2018 and went on till 18 Sep, 2018. The bullish trend returned +2.68% to investors. This was followed by a bearish trend that started on 4 Oct, 2018 and ended on 12 Oct, 2018. This bearish trend lost -12.22% of investor capital.

On monthly basis, WTS delivered profits in more months over the last year, than losses. WTS delivered profits less regularly than SP500 index. WTS was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -13.87% compared to -7.28% returned by SP500 index in Oct 2018. WTS had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both WTS and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Based on my own personal experience - both as an investor in recent years and an expert witness in years past - rarely do more than three or four variables really count. Everything else is noise.

WTS is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in WTS's volatility from 13 Sep, 2018 to 4 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 WTS has significant positive skewness in it's return distribution. This indicates that investors can expect WTS to recover from drawdowns quickly. Which makes WTS 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 WTS. Therefore, SP500 must receive a lower allocation than WTS in your portfolio. SP500 index usually has shorter drawdown period than WTS.

Based on your interest in WTS you may find it interesting to know that APRN and EPIX have both shown remarkable performance and deserve to be on every investors' watchlist.

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