Low Beta THEME

1284.26 -4.85 (-0.38%) Sell

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LOWBETA THEME investors dump it for better alternatives

14 min read

~LOWBETA delivered massive losses today. On a longer term basis, investors in Low Beta made +0.04% per day. Tuesday's performance of -0.38% was a significant underperformance compared to it's daily average.

[Theme constituents]

Buy-and-Hold investors in ~LOWBETA experienced a maximum drawdown of -5.1% over the last three months. It lost -4.05% during this down 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 +1.54%.


~LOWBETA has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 14 days, ~LOWBETA outperformed the SP500 index on 53% days.

~LOWBETA was profitable on 53% days in the last three months. During this time, it delivered on average -0.06% per day. It delivered it's worst daily return of -2.75%, during this period, on Monday, 17 Dec, 2018. There was initially a bearish trend during this period which started on 24 Sep, 2018 and went on till 26 Sep, 2018. The trend delivered -2.11% losses to investors. This was followed by a bullish trend that started on 23 Nov, 2018 and ended on 3 Dec, 2018. This bullish trend delivered +2.56% to investors.

~LOWBETA had 7 profitable and 5 loss making months over the last year. During the last year, ~LOWBETA underperformed SP500 index on monthly return basis. ~LOWBETA significantly outperformed SP500 index in Nov 2018, when it returned +4.98% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ~LOWBETA and SP500 index, both had periods of 6 consecutive profitable months.

"I believe that through knowledge and discipline, financial peace is possible for all of us.

~LOWBETA 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 fall in ~LOWBETA's volatility from 19 Sep, 2018 to 13 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 ~LOWBETA has significant positive skewness in it's return distribution. This indicates that investors can expect ~LOWBETA to recover from drawdowns quickly. Which makes ~LOWBETA a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in ~LOWBETA), three instruments that deserve special mention are AMRH, AYTU and NSPR. They have all outperformed the market and must be closely watched for investment opportunities.

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