Looking to invest in NEWCARS THEME? Avoid at the moment as it was among the worst performers
07 Dec, 201814 min read
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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%.
~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%.
~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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