CALAMP CORP. has destroyed investor wealth on Tuesday. It delivered -2.09% to close at 13.59. On a day when the overall market breadth was 34%, it closed higher than 7% of the market. In comparison, the benchmark SP500 index closed today at +0.01%.
Buy-and-Hold investors in CAMP experienced a maximum drawdown of -43.28% over the last three months. It delivered -38.76% 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 +28.52%.
CAMP has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 6 Jan, 2016 to 11 Dec, 2018. Over the last 2 years 11 months and 14 days, CAMP underperformed the SP500 index on 47% days. Which indicates that on days CAMP underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
CAMP returned losses on 62% days in the last three months. During this time, it delivered on average -0.72% per day. It delivered it's worst daily return of -16.54%, during this period, on Tuesday, 11 Dec, 2018. The longest stort-term trend during this period was 6 losing days, which started on 1 Oct, 2018 and ended on 8 Oct, 2018. This bearish trend lost -16.11% of investor capital.
The last 12 months saw CAMP's investors making profits in 5 months and incurring losses in 7 months. CAMP was less consistent in delivering monthly returs than SP500 index. CAMP was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -23.22% compared to -7.75% returned by SP500 index in Dec 2018. CAMP had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered -18.7%.
Trading mastery is a state of complete acceptance of probability, not a state of fight it.
-- Yvan Byeajee
CAMP 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 CAMP's volatility from 26 Sep, 2018 to 12 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 CAMP 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.
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