Social Networking THEME

1248.82 -5.83 (-0.47%) Sell

Optimize theme

Doubt in the minds of SOCIALNETWORK THEME investors as it destroyed investor wealth

14 min read

Social Networking was among the worst performers on Friday. It fell by -0.47% to close at 1248.82. On a day when the overall market breadth was 35%, it closed higher than 77% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Theme constituents]

Buy-and-Hold investors in ~SOCIALNETWORK experienced a maximum drawdown of -23.26% over the last three months. It fell by -15.37% during this strong bearish trending period. There were no long signals during this period, where the short signal generated good profits of +15.37% for investors.


~SOCIALNETWORK has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 2 Mar, 2017 to 18 Jun, 2018. Over the last 1 year 9 months and 12 days, ~SOCIALNETWORK outperformed the SP500 index on 53% days.

During the last three months ~SOCIALNETWORK was mostly loss making and delivered on average -0.24% per day. It's best return during this period (of +4.24%) was on Friday, 12 Oct, 2018. While it's worst loss in the same period (of -5.6%) was on Friday, 9 Nov, 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 -10.18% of investor capital.

During the last year ~SOCIALNETWORK had 5 profitable months and 7 loss making months. ~SOCIALNETWORK returned profits in fewer months than SP500 index. ~SOCIALNETWORK was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -10.12% compared to -7.28% returned by SP500 index in Oct 2018. ~SOCIALNETWORK had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -19.14%.

"Confronted with a challenge to distill the secret of sound investment into three words, we venture the motto, Margin of Safety.

~SOCIALNETWORK 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 fall in ~SOCIALNETWORK's volatility from 17 Sep, 2018 to 27 Sep, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that ~SOCIALNETWORK has significant positive skewness in it's return distribution. This indicates that investors can expect ~SOCIALNETWORK to recover from drawdowns quickly. Which makes ~SOCIALNETWORK a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in ~SOCIALNETWORK you may find it interesting to know that FDX has delivered similar performance as ~SOCIALNETWORK and can be considered as an alternative investment candidate (to ~SOCIALNETWORK).

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