The party never started for ADVERTISING THEME investors as it delivered massive losses

Advertising is a falling knife that can bleed you if you catch it on Tuesday. It returned -1.34% to close at 838.021. On a day when the overall market breadth was 34%, it closed higher than 12% of the market. In comparison, the benchmark SP500 index closed today at +0.01%.

[Theme constituents]

~ADVERTISING is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +18.15% for investors.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

~ADVERTISING has been outperforming the SP500 index in recent time. Over the last 1 year 8 months and 5 days, ~ADVERTISING underperformed the SP500 index on 47% days. Which indicates that on days ~ADVERTISING underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ~ADVERTISING was mostly loss making and delivered on average -0.36% per day. It's best return during this period (of +4.87%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -5.12%) was on Wednesday, 24 Oct, 2018. There was initially a bullish trend during this period which started on 19 Sep, 2018 and went on till 21 Sep, 2018. The bullish trend returned +1.14% to investors. This was followed by a bearish trend that started on 4 Oct, 2018 and ended on 15 Oct, 2018. This bearish trend lost -11.31% of investor capital.

On monthly basis, ~ADVERTISING delivered losses in more months over the last year, than profits. ~ADVERTISING delivered profits less regularly than SP500 index. ~ADVERTISING was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -13.54% compared to -7.75% returned by SP500 index in Dec 2018. ~ADVERTISING had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Aug 2018 to Dec 2018) during which period it delivered -28.11%. It is interesting to note that both ~ADVERTISING and SP500 index significantly outperform during months when quarterly/annual results are announced.

If we command our wealth, we shall be rich and free. If our wealth commands us, we are poor indeed.
-- Edmund Burke

~ADVERTISING 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 ~ADVERTISING's volatility from 19 Sep, 2018 to 26 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that ~ADVERTISING has significant positive skewness in it's return distribution. This indicates that investors can expect ~ADVERTISING to recover from drawdowns quickly. Which makes ~ADVERTISING a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in ~ADVERTISING), if you are evaluating ~ADVERTISING as an investment candidate, then you should read about PSA which has delivered similar performance and can help diversify your portfolio.