Social Media THEME

1383.29 +7.25 (+0.52%) Sell

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Doubt in the minds of SOCIALMEDIA THEME investors as it ranked among the worst performers

14 min read

Social Media ranked among the worst performers on Tuesday. It increased by +0.52% to close at 1383.29. It is currently trading -12% below it's 52 week high of 1577.74.

[Theme constituents]

Buy-and-Hold investors in ~SOCIALMEDIA experienced a maximum drawdown of -12.78% over the last three months. It fell by -11.22% during this strong bearish 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 +6.33%.


~SOCIALMEDIA has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 6 Mar, 2017 to 2 Nov, 2018. Over the last 2 years 11 months and 14 days, ~SOCIALMEDIA outperformed the SP500 index on 56% days.

During the last three months ~SOCIALMEDIA delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +2.94%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -3.91%) was on Tuesday, 20 Nov, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 30 Oct, 2018 and went on till 7 Nov, 2018. This bullish trend returned +7.93% to investors.

During the last year ~SOCIALMEDIA had 8 profitable months and 4 loss making months. Profitable number of months of ~SOCIALMEDIA and SP500 index were the same. ~SOCIALMEDIA was also a less risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -6.7% compared to -7.75% returned by SP500 index in Dec 2018. ~SOCIALMEDIA and SP500 index, both had periods of 6 consecutive profitable months. It is interesting to note that both ~SOCIALMEDIA and SP500 index significantly outperform during months when quarterly/annual results are announced.

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~SOCIALMEDIA 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 ~SOCIALMEDIA's volatility from 1 Oct, 2018 to 7 Dec, 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 ~SOCIALMEDIA has significant positive skewness in it's return distribution. This indicates that investors can expect ~SOCIALMEDIA to recover from drawdowns quickly. Which makes ~SOCIALMEDIA a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in ~SOCIALMEDIA you may find it interesting to know that CSCO and V are both large caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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