26.98 -0.17 (-0.63%) Sell

Don't even consider investing in CARB now, it is a volatile investment

13 min read

CARBONITE INC has destroyed investor wealth today. It delivered -0.63% to close at 26.98. It's recent 5 day performance has been +3.11%, -1.27%, +1.6%, -7.93% and +3.26%.

[Themes containing CARB]

CARB showed a strong bearish trend over the last 3 months. During this period CARB delivered -33.05% and saw a maximum drawdown of -36.57%. There were 2 short signals during this period that returned a cumulative of +29.54% to investors.


CARB has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 16 Feb, 2016 to 7 Sep, 2018. Over the last 2 years 11 months and 9 days, CARB outperformed the SP500 index on 52% days.

During the last three months CARB delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +5.99%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -24.05%) was on Friday, 2 Nov, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 11 Oct, 2018 and went on till 18 Oct, 2018. This bullish trend returned +10.81% to investors.

The last 12 months saw CARB's investors making profits in 5 months and incurring losses in 7 months. CARB was less consistent in delivering monthly returs than SP500 index. CARB significantly outperformed SP500 index in May 2018, when it returned +24.76% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CARB had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

"There are no patents in finance.

CARB 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 CARB's volatility from 17 Sep, 2018 to 30 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 CARB 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.

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

On a general note (since you are interested in CARB), if you are evaluating CARB as an investment candidate, then you should read about INWK which has delivered similar performance and can help diversify your portfolio.

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