Stop-loss on the minds of CONNECTEDCAR THEME investors as it was among the worst performers

Connected Car was among the worst performers on Tuesday. It grew by +0.76% to close at 1394.29. On a day when the overall market breadth was 34%, it closed higher than 75% of the market. In comparison, the benchmark SP500 index closed today at +0.01%.

[Theme constituents]

~CONNECTEDCAR is currently in a down trend. Over the last three months 4 bearish signals have generated a profit of +7.03% for investors.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

~CONNECTEDCAR has been underperforming the SP500 index in recent time, after having outperformed till 21 Nov, 2017. Over the last 2 years 11 months and 14 days, ~CONNECTEDCAR outperformed the SP500 index on 56% days.

During the last three months ~CONNECTEDCAR was mostly loss making and delivered on average -0.29% per day. It's best return during this period (of +3.92%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -5.34%) was on Wednesday, 24 Oct, 2018. There was initially a bearish trend during this period which started on 21 Sep, 2018 and went on till 15 Oct, 2018. The trend delivered -14.94% losses to investors. This was followed by a bullish trend that started on 13 Nov, 2018 and ended on 16 Nov, 2018. This bullish trend delivered +2.5% to investors.

~CONNECTEDCAR had 6 profitable and 6 loss making months over the last year. During the last year, ~CONNECTEDCAR underperformed SP500 index on monthly return basis. ~CONNECTEDCAR was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -8.46% compared to -7.75% returned by SP500 index in Dec 2018. ~CONNECTEDCAR had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both ~CONNECTEDCAR and SP500 index significantly outperform during months when quarterly/annual results are announced.

Financial peace isn't the acquisition of stuff. It's learning to live on less than you make, so you can give money back and have money to invest. You can't win until you do this.
-- Dave Ramsey

~CONNECTEDCAR 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 ~CONNECTEDCAR's volatility from 3 Oct, 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 ~CONNECTEDCAR has significant positive skewness in it's return distribution. This indicates that investors can expect ~CONNECTEDCAR to recover from drawdowns quickly. Which makes ~CONNECTEDCAR a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

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