60.54 -1.24 (-2.05%) Sell

Want to invest in WUBA? Avoid as it is a falling knife that can bleed you if you catch it

13 min read

58.COM INC. (Foreign) is a falling knife that can bleed you if you catch it today. It returned -2.05% to close at 60.54. It's recent 5 day performance has been +1.21%, +5.33%, -0.14%, -2.76% and +0.22%.

[Themes containing WUBA]

WUBA showed a strong down trend over the last 3 months. During this period WUBA returned -16.65% and saw a maximum drawdown of -29.26%. There were 2 short signals during this period that returned a cumulative of +2.22% to investors.


WUBA has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 9 days, WUBA underperformed the SP500 index on 50% days. Which indicates that on days WUBA underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months WUBA was mostly loss making and delivered on average -0.22% per day. It's best return during this period (of +8.41%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -7.67%) was on Wednesday, 24 Oct, 2018. There was initially a bullish trend during this period which started on 18 Sep, 2018 and went on till 20 Sep, 2018. The bullish trend returned +5.65% to investors. This was followed by a bearish trend that started on 28 Sep, 2018 and ended on 10 Oct, 2018. This bearish trend lost -20.81% of investor capital.

On monthly basis, WUBA delivered losses in more months over the last year, than profits. WUBA delivered profits less regularly than SP500 index. WUBA was also a more risky investment than SP500 index as it's worst month in the last year, Jun 2018, returned -14.63% compared to -7.28% returned by SP500 index in Oct 2018. WUBA had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from May 2018 to Jul 2018) during which period it delivered -25.22%. It is interesting to note that both WUBA and SP500 index significantly outperform during months when quarterly/annual results are announced.

"If all the economists were laid end to end, they'd never reach a conclusion.

WUBA 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 WUBA's volatility from 18 Sep, 2018 to 15 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 WUBA has significant negative skewness in it's return distribution. This indicates that WUBA is very risky for short-term investment and can significantly underperform for long durations.

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

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

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