33.06 -1.05 (-3.16%) Sell

The party never started for WWW investors as it was among the worst performers

13 min read

WOLVERINE WORLD WIDE INC significantly underperformed today. It returned -3.16% to close at 33.06. It's recent 5 day performance has been +0.18%, -3.92%, +2.51%, +0.61% and +0.09%.

[Themes containing WWW]

WWW is currently in a down trend. The current bearish signal has generated a profit of +9.25% for investors in the last three months.


WWW has been underperforming the SP500 index in recent time, after having outperformed till 12 Sep, 2018. Over the last 2 years 11 months and 3 days, WWW outperformed the SP500 index on 52% days.

WWW returned losses on 54% days in the last three months. During this time, it delivered on average -0.24% per day. It delivered it's worst daily return of -9.09%, during this period, on Wednesday, 7 Nov, 2018. There was initially a bearish trend during this period which started on 27 Sep, 2018 and went on till 2 Oct, 2018. The trend delivered -7.45% losses to investors. This was followed by a bullish trend that started on 28 Nov, 2018 and ended on 3 Dec, 2018. This bullish trend delivered +6.67% to investors.

On monthly basis, WWW delivered profits and losses in equal number of months. WWW delivered profits less regularly than SP500 index. WWW significantly outperformed SP500 index in May 2018, when it returned +11.92% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. WWW had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year. It is interesting to note that both WWW and SP500 index significantly outperform during months when quarterly/annual results are announced.

It is time for us to stand and cheer for the doer, the achiever, the one who recognizes the challenge and does something about it.
-- Vince Lombardi

WWW 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 WWW's volatility from 11 Sep, 2018 to 20 Nov, 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 WWW has significant positive skewness in it's return distribution. This indicates that investors can expect WWW to recover from drawdowns quickly. Which makes WWW 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 WWW. Therefore, SP500 must receive a lower allocation than WWW in your portfolio. SP500 index usually has shorter drawdown period than WWW.

On a general note (since you are interested in WWW), two mid cap instruments that deserve special mention are AMD and LULU. They have significantly outperformed the overall market.

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