Looking to invest in SHALEGAS THEME? Avoid at the moment as it ranked among the worst performers
07 Dec, 201814 min read
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Shale Gas ranked among the worst performers on Friday. It fell by -1.25% to close at 1007.72 which is it's 52 week low, down -40% from it's 52 week high.
~SHALEGAS showed a strong bearish trend over the last 3 months. During this period ~SHALEGAS fell by -27.07% and saw a maximum drawdown of -34.22%. There was a short signal during this period which returned +27.07%.
~SHALEGAS has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 5 Dec, 2016 to 6 Dec, 2018. Over the last 2 years 11 months and 3 days, ~SHALEGAS underperformed the SP500 index on 51% days.
During the last three months ~SHALEGAS was mostly loss making and delivered on average -0.47% per day. It's best return during this period (of +4.7%) was on Monday, 5 Nov, 2018. While it's worst loss in the same period (of -6.58%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 18 Sep, 2018 and went on till 25 Sep, 2018. This bullish trend returned +6.86% to investors.
During the last year ~SHALEGAS had 4 profitable months and 8 loss making months. ~SHALEGAS returned profits in fewer months than SP500 index. ~SHALEGAS was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -16.39% compared to -7.28% returned by SP500 index in Oct 2018. ~SHALEGAS had a longer winning streak of losing months than SP500 index. It went down in 6 straight months (from Jul 2018 to Dec 2018) during which period it delivered -44.75%.
Traditionally, the sample is always better than the stock you deliver to the store.
-- Calvin Klein
~SHALEGAS 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 ~SHALEGAS's volatility from 10 Sep, 2018 to 5 Nov, 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 ~SHALEGAS has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.
~SHALEGAS has more chance of extreme outcomes than the SP500 index. Therefore, ~SHALEGAS must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than ~SHALEGAS.
Based on your interest in ~SHALEGAS you may find it interesting to know that TYHT, EPIX and AMRH have all shown remarkable performance and qualify to be on every investor's watchlist.
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