XUNLEI LTD (Foreign) significantly underperformed today. It fell by -3.3% to close at 4.4. It's recent 5 day performance has been -2.15%, -0.64%, -3.11%, -1.43% and -4.85%.
XNET showed a strong bearish trend over the last 3 months. During this period XNET fell by -51.97% and saw a maximum drawdown of -51.97%. There were 3 short signals during this period that returned a cumulative of +49.79% to investors.
XNET has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 2 Aug, 2017 to 24 Nov, 2017. Over the last 2 years 11 months and 10 days, XNET underperformed the SP500 index on 52% days.
During the last three months XNET was mostly loss making and delivered on average -1.08% per day. It's best return during this period (of +6.64%) was on Friday, 12 Oct, 2018. While it's worst loss in the same period (of -12.66%) was on Wednesday, 14 Nov, 2018. The longest stort-term trend during this period was 8 losing days, which started on 21 Sep, 2018 and ended on 2 Oct, 2018. This bearish trend lost -26.58% of investor capital.
During the last year XNET had 1 profitable months and 11 loss making months. XNET returned profits in fewer months than SP500 index. XNET significantly outperformed SP500 index in Apr 2018, when it returned +30.82% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. XNET had a longer winning streak of losing months than SP500 index. It went down in 8 straight months (from May 2018 to Dec 2018) during which period it delivered -100.7%. It is interesting to note that both XNET and SP500 index significantly outperform during months when quarterly/annual results are announced.
The hardest thing to understand in the world is the income tax.
-- Albert Einstein
XNET 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 XNET's volatility from 18 Sep, 2018 to 13 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 XNET has significant negative skewness in it's return distribution. This indicates that XNET is very risky for short-term investment and can significantly underperform for long durations.
Investors trading in XNET derivatives at this moment can consider 'Protective Collar' options strategy to receive better risk-adjusted returns.
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