AUTOPARTS THEME is a falling knife, continues to bleed every investor trying to catch it

Auto Parts Equipment is a falling knife that can bleed you if you catch it today. It fell by -3.87% to close at 674.236. During the last week it fell by -8.21% and saw a maximum drawdown of -9.84% before bouncing back.

[Theme constituents]

Buy-and-Hold investors in ~AUTOPARTS experienced a maximum drawdown of -24.92% over the last three months. It fell by -23.03% during this strong bearish trending period. There were no long signals during this period, where the short signal generated good profits of +23.03% for investors.

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Monthly Performance

Alpha (outperformance)

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Return distribution

~AUTOPARTS has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 12 Jan, 2018 to 18 Oct, 2018. Over the last 1 year and 2 days, ~AUTOPARTS underperformed the SP500 index on 53% days.

During the last three months ~AUTOPARTS was mostly loss making and delivered on average -0.39% per day. It's best return during this period (of +5.45%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -5.37%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 25 Oct, 2018 and went on till 1 Nov, 2018. This bullish trend returned +12.15% to investors.

During the last year ~AUTOPARTS had 3 profitable months and 9 loss making months. ~AUTOPARTS returned profits in fewer months than SP500 index. ~AUTOPARTS was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -11.41% compared to -7.28% returned by SP500 index in Oct 2018. ~AUTOPARTS 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 -29.45%. It is interesting to note that both ~AUTOPARTS and SP500 index significantly outperform during months when quarterly/annual results are announced.

"You have venture capitalists. We view them as experts who also help finance your company and give directions and also some pretty candid discussions about what you have to do better.

~AUTOPARTS 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 surge in ~AUTOPARTS's volatility from 13 Sep, 2018 to 2 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 ~AUTOPARTS has significant positive skewness in it's return distribution. This indicates that investors can expect ~AUTOPARTS to recover from drawdowns quickly. Which makes ~AUTOPARTS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in ~AUTOPARTS you may find it interesting to know that USPH has delivered similar performance as ~AUTOPARTS and can be considered as an alternative investment candidate (to ~AUTOPARTS).