Healthcare Products THEME

1801.76 +6.33 (+0.35%) Sell

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Don't invest in HEALTHCAREPRDT THEME now, it is a risky investment

14 min read

Healthcare Products was among the worst performers on Tuesday. It grew by +0.35% to close at 1801.76. It is currently trading -13% below it's 52 week high of 2084.9.

[Theme constituents]

~HEALTHCAREPRDT showed a strong down trend over the last 3 months. During this period ~HEALTHCAREPRDT lost -10.39% and saw a maximum drawdown of -14.78%. There was a short signal during this period which returned +3.54%.


~HEALTHCAREPRDT has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 14 days, ~HEALTHCAREPRDT outperformed the SP500 index on 59% days.

During the last three months ~HEALTHCAREPRDT was mostly loss making and delivered on average -0.16% per day. It's best return during this period (of +3.25%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -3.65%) was on Monday, 12 Nov, 2018. There was initially a bullish trend during this period which started on 19 Sep, 2018 and went on till 26 Sep, 2018. The bullish trend returned +3.0% to investors. This was followed by a bearish trend that started on 2 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -9.61% of investor capital.

~HEALTHCAREPRDT had 8 profitable and 4 loss making months over the last year. During the last year, number of profitable months of ~HEALTHCAREPRDT and SP500 index were the same. ~HEALTHCAREPRDT was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -12.95% compared to -7.75% returned by SP500 index in Dec 2018. ~HEALTHCAREPRDT and SP500 index, both had periods of 6 consecutive profitable months. It is interesting to note that both ~HEALTHCAREPRDT and SP500 index significantly outperform during months when quarterly/annual results are announced.

"The real measure of your wealth is how much you'd be worth if you lost all your money

~HEALTHCAREPRDT 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 ~HEALTHCAREPRDT's volatility from 19 Sep, 2018 to 19 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 ~HEALTHCAREPRDT has significant positive skewness in it's return distribution. This indicates that investors can expect ~HEALTHCAREPRDT to recover from drawdowns quickly. Which makes ~HEALTHCAREPRDT a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in ~HEALTHCAREPRDT), three instruments that have performed similar to ~HEALTHCAREPRDT are ~HIGHMOMENTUM, ~COMMERCIALSERVS and ~MODERNWARFARE. They must all be evaluated as alternative investment options and for diversification.

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