China Internet THEME

1126.24 -9.82 (-0.87%) Sell

Optimize theme

The party never started for CHINAINTERNET THEME investors as it significantly underperforms

14 min read

China Internet ranked among the worst performers on Tuesday. It returned -0.87% to close at 1126.24. It is currently trading -40% below it's 52 week high of 1892.75.

[Theme constituents]

~CHINAINTERNET is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +8.25% for investors.


~CHINAINTERNET has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 14 days, ~CHINAINTERNET underperformed the SP500 index on 47% days. Which indicates that on days ~CHINAINTERNET underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

~CHINAINTERNET returned losses on 61% days in the last three months. During this time, it delivered on average -0.23% per day. It delivered it's best daily return of +7.3%, during this period, on Thursday, 1 Nov, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 11 Oct, 2018. The trend delivered -12.93% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 1 Nov, 2018. This bullish trend delivered +13.38% to investors.

On monthly basis, ~CHINAINTERNET delivered losses in more months over the last year, than profits. ~CHINAINTERNET delivered profits less regularly than SP500 index. ~CHINAINTERNET was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -13.2% compared to -7.75% returned by SP500 index in Dec 2018. ~CHINAINTERNET had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Jun 2018 to Oct 2018) during which period it delivered -42.3%. It is interesting to note that both ~CHINAINTERNET and SP500 index significantly outperform during months when quarterly/annual results are announced.

If you don't value your time, neither will others. Stop giving away your time and talents. Value what you know & start charging for it.
-- Kim Garst

~CHINAINTERNET 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 ~CHINAINTERNET's volatility from 27 Sep, 2018 to 1 Nov, 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 ~CHINAINTERNET has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

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

On a general note (since you are interested in ~CHINAINTERNET), two large cap instruments that deserve special mention are CSCO and MSFT. They have significantly outperformed the overall market.

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.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