Cloud Computing THEME

1091.36 +17.78 (+1.63%) Sell

Optimize theme

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

14 min read

Cloud Computing has destroyed investor wealth today. It returned +1.63% to close at 1091.36. It's recent 5 day performance has been -4.28%, -1.9%, -1.6%, +0.59% and +0.73%.

[Theme constituents]

~CLOUDCOMPUTING showed a strong down trend over the last 3 months. During this period ~CLOUDCOMPUTING returned -14.48% and saw a maximum drawdown of -16.65%. There were 3 short signals during this period that returned a cumulative of +8.33% to investors.

Trend

~CLOUDCOMPUTING has been underperforming the SP500 index in recent time, after having outperformed till 20 Jul, 2018. Over the last 1 year 2 months and 12 days, ~CLOUDCOMPUTING outperformed the SP500 index on 59% days.

During the last three months ~CLOUDCOMPUTING was mostly loss making and delivered on average -0.23% per day. It's best return during this period (of +3.32%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -4.28%) was on Monday, 17 Dec, 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 -9.9% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 7 Nov, 2018. This bullish trend delivered +11.04% to investors.

On monthly basis, ~CLOUDCOMPUTING delivered profits in more months over the last year, than losses. ~CLOUDCOMPUTING delivered profits less regularly than SP500 index. ~CLOUDCOMPUTING was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -10.26% compared to -7.75% returned by SP500 index in Dec 2018. ~CLOUDCOMPUTING had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

If I finance a bank and I know if the bank will get in trouble, I will be hit and I will lose money, I will put a price on that.
-- Jeroen Dijsselbloem

~CLOUDCOMPUTING 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 ~CLOUDCOMPUTING's volatility from 19 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 ~CLOUDCOMPUTING has significant positive skewness in it's return distribution. This indicates that investors can expect ~CLOUDCOMPUTING to recover from drawdowns quickly. Which makes ~CLOUDCOMPUTING a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in ~CLOUDCOMPUTING), two instruments that have delivered similar performance as ~CLOUDCOMPUTING are ABM and HPP. They are suitable as good alternative investment candidates that can diversify your portfolio.

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
Following
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{detail.name}} {{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