Cyber Security THEME

1380.53 +16.76 (+1.21%) Sell

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Doubt in the minds of CYBERSECURITY THEME investors as it destroyed investor wealth

14 min read

Cyber Security has destroyed investor wealth on Tuesday. It delivered +1.21% to close at 1380.53. It is currently trading +35% above it's 52 week low of 1016.58 and is down only -11% from it's 52 week high.

[Theme constituents]

Buy-and-Hold investors in ~CYBERSECURITY experienced a maximum drawdown of -14.98% over the last three months. It fell by -9.44% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +3.53%.


~CYBERSECURITY has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 5 Dec, 2017 to 12 Dec, 2018. Over the last 1 year 1 month and 1 day, ~CYBERSECURITY outperformed the SP500 index on 63% days.

During the last three months ~CYBERSECURITY was mostly loss making and delivered on average -0.13% per day. It's best return during this period (of +5.75%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -6.45%) was on Monday, 19 Nov, 2018. The longest stort-term trend during this period was 6 losing days, which started on 4 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -9.96% of investor capital.

During the last year ~CYBERSECURITY had 8 profitable months and 4 loss making months. Profitable number of months of ~CYBERSECURITY and SP500 index were the same. ~CYBERSECURITY significantly outperformed SP500 index in Aug 2018, when it returned +13.58% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ~CYBERSECURITY had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year.

"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.

~CYBERSECURITY is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in ~CYBERSECURITY's volatility from 24 Sep, 2018 to 7 Dec, 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 ~CYBERSECURITY has significant positive skewness in it's return distribution. This indicates that investors can expect ~CYBERSECURITY to recover from drawdowns quickly. Which makes ~CYBERSECURITY a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in ~CYBERSECURITY you may find it interesting to know that MSFT, PFE and V are large caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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