Smart Grid THEME

1206.82 -1.71 (-0.14%) Sell

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SMARTGRID THEME is a falling knife, continues to bleed every investor trying to catch it

14 min read

~SMARTGRID has destroyed investor wealth today. On a longer term basis, investors in Smart Grid made +0.03% per day. Tuesday's performance of -0.14% was a underperformance compared to it's daily average.

[Theme constituents]

~SMARTGRID showed a strong bearish trend over the last 3 months. During this period ~SMARTGRID delivered -10.89% and saw a maximum drawdown of -12.85%. There were 2 short signals during this period that returned a cumulative of +7.64% to investors.


~SMARTGRID has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 28 Nov, 2017 to 12 Oct, 2018. Over the last 2 years and 8 months, ~SMARTGRID underperformed the SP500 index on 46% days. Which indicates that on days ~SMARTGRID underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ~SMARTGRID was mostly loss making and delivered on average -0.17% per day. It's best return during this period (of +3.08%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -3.3%) was on Wednesday, 10 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 4 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -8.05% of investor capital.

The last 12 months saw ~SMARTGRID's investors making profits in 5 months and incurring losses in 7 months. ~SMARTGRID was less consistent in delivering monthly returs than SP500 index. ~SMARTGRID was also a less risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -7.11% compared to -7.75% returned by SP500 index in Dec 2018. ~SMARTGRID had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both ~SMARTGRID and SP500 index significantly outperform during months when quarterly/annual results are announced.

I'm involved in the stock market, which is fun and, sometimes, very painful.
-- Regis Philbin

~SMARTGRID is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in ~SMARTGRID's volatility from 19 Sep, 2018 to 25 Oct, 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 ~SMARTGRID has significant positive skewness in it's return distribution. This indicates that investors can expect ~SMARTGRID to recover from drawdowns quickly. Which makes ~SMARTGRID a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in ~SMARTGRID you may find it interesting to know that ~PETPASSION and ~COMMUNICATIONS have both performed similar to ~SMARTGRID and can be considered by investors as alternative investment options.

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