Pharmaceuticals THEME

930.919 -9.54 (-1.02%) Sell

Optimize theme

PHARMACEUTICALS THEME investors take a massive hit

14 min read

~PHARMACEUTICALS has destroyed investor wealth today. On a longer term basis, investors in Pharmaceuticals made -0.0% per day. Tuesday's performance of -1.02% was a significant underperformance compared to it's daily average.

[Theme constituents]

Buy-and-Hold investors in ~PHARMACEUTICALS experienced a maximum drawdown of -9.76% over the last three months. It lost -8.69% 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 +5.91%.


~PHARMACEUTICALS has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 14 days, ~PHARMACEUTICALS underperformed the SP500 index on 52% days.

During the last three months ~PHARMACEUTICALS was mostly loss making and delivered on average -0.14% per day. It's best return during this period (of +2.63%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -3.96%) was on Wednesday, 24 Oct, 2018. There was initially a bullish trend during this period which started on 23 Nov, 2018 and went on till 30 Nov, 2018. The bullish trend returned +3.51% to investors. This was followed by a bearish trend that started on 3 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -5.3% of investor capital.

~PHARMACEUTICALS had 7 profitable and 5 loss making months over the last year. During the last year, ~PHARMACEUTICALS underperformed SP500 index on monthly return basis. ~PHARMACEUTICALS was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -9.65% compared to -7.75% returned by SP500 index in Dec 2018. ~PHARMACEUTICALS had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year. It is interesting to note that both ~PHARMACEUTICALS and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Great businesses produce great results

~PHARMACEUTICALS is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in ~PHARMACEUTICALS's volatility from 19 Sep, 2018 to 7 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 ~PHARMACEUTICALS has significant positive skewness in it's return distribution. This indicates that investors can expect ~PHARMACEUTICALS to recover from drawdowns quickly. Which makes ~PHARMACEUTICALS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

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

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{}} {{detail.trend}} 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter