New Cars THEME

941.055 -34.65 (-3.68%) Sell

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Looking to invest in NEWCARS THEME? Avoid at the moment as it was among the worst performers

14 min read

New Cars was among the worst performers today. It fell by -3.68% to close at 941.055. It's recent 5 day performance has been -1.77%, -4.21%, +2.21%, +0.6% and -1.47%.

[Theme constituents]

~NEWCARS showed a strong bearish trend over the last 3 months. During this period ~NEWCARS fell by -19.95% and saw a maximum drawdown of -22.51%. There was a short signal during this period which returned +19.95%.

Trend

~NEWCARS has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 25 Jan, 2017 to 18 Oct, 2018. Over the last 2 years 11 months and 3 days, ~NEWCARS underperformed the SP500 index on 48% days. Which indicates that on days ~NEWCARS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ~NEWCARS was mostly loss making and delivered on average -0.34% per day. It's best return during this period (of +3.07%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -5.09%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 25 Oct, 2018 and went on till 1 Nov, 2018. This bullish trend returned +9.29% to investors.

During the last year ~NEWCARS had 4 profitable months and 8 loss making months. ~NEWCARS returned profits in fewer months than SP500 index. ~NEWCARS was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -9.45% compared to -7.28% returned by SP500 index in Oct 2018. ~NEWCARS had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Aug 2018 to Dec 2018) during which period it delivered -26.88%. It is interesting to note that both ~NEWCARS and SP500 index significantly outperform during months when quarterly/annual results are announced.

If you totally want to reduce risk, take no risk. Bury the money. Then you've got no risk at all.
-- Don Connelly

~NEWCARS is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in ~NEWCARS's volatility from 18 Sep, 2018 to 7 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

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

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

Based on your interest in ~NEWCARS you may find it interesting to know that HEAR has shown remarkable performance this year and deserves to be on every investors' watchlist.

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