50.06 -2.23 (-4.45%) Sell

Prayers for CAH investors as it ranked among the worst performers

13 min read

CAH is a falling knife that can bleed you if you catch it today. On a longer term basis, investors in CARDINAL HEALTH INC made -0.01% per day. Friday's performance of -4.45% was a underperformance compared to it's daily average.

[Themes containing CAH]

Buy-and-Hold investors in CAH experienced a maximum drawdown of -13.14% over the last three months. It delivered -4.83% during this 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.


CAH has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 5 Jan, 2016 to 8 Aug, 2018. Over the last 2 years 11 months and 10 days, CAH underperformed the SP500 index on 48% days. Which indicates that on days CAH underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months CAH was mostly loss making and delivered on average -0.06% per day. It's best return during this period (of +4.62%) was on Thursday, 8 Nov, 2018. While it's worst loss in the same period (of -4.96%) was on Thursday, 11 Oct, 2018. The longest stort-term trend during this period was 5 losing days, which started on 18 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -7.49% of investor capital.

The last 12 months saw CAH's investors making profits in 6 months and incurring losses in 6 months. CAH was less consistent in delivering monthly returs than SP500 index. CAH was also a more risky investment than SP500 index as it's worst month in the last year, May 2018, returned -18.82% compared to -7.28% returned by SP500 index in Oct 2018. CAH had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both CAH and SP500 index significantly outperform during months when quarterly/annual results are announced.

Many folks think they aren't good at earning money, when what they don't know is how to use it.
-- Frank A. Clark

CAH 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 CAH's volatility from 3 Oct, 2018 to 8 Nov, 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 CAH has significant positive skewness in it's return distribution. This indicates that investors can expect CAH to recover from drawdowns quickly. Which makes CAH a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in CAH derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in CAH you may find it interesting to know that CSCO is a large cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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