55.05 -0.34 (-0.61%) Sell

CASS is a falling knife, continues to bleed every investor trying to catch it

13 min read

CASS was among the worst performers today. On a longer term basis, investors in CASS INFORMATION SYSTEMS INC made -0.03% per day. Friday's performance of -0.61% was a significant underperformance compared to it's daily average.

[Themes containing CASS]

CASS showed a strong down trend over the last 3 months. During this period CASS returned -18.08% and saw a maximum drawdown of -21.51%. There was a short signal during this period which returned +18.08%.


CASS has been underperforming the SP500 index in recent time, after having outperformed till 28 Dec, 2016. Over the last 2 years 11 months and 10 days, CASS underperformed the SP500 index on 47% days. Which indicates that on days CASS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months CASS was mostly loss making and delivered on average -0.28% per day. It's best return during this period (of +4.46%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -16.09%) was on Monday, 3 Dec, 2018. There was initially a bullish trend during this period which started on 25 Oct, 2018 and went on till 31 Oct, 2018. The bullish trend returned +11.56% to investors. This was followed by a bearish trend that started on 29 Nov, 2018 and ended on 7 Dec, 2018. This bearish trend lost -19.54% of investor capital.

On monthly basis, CASS delivered profits in more months over the last year, than losses. CASS delivered profits less regularly than SP500 index. CASS was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -16.6% compared to -7.28% returned by SP500 index in Oct 2018. CASS had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year.

"Your net worth to the world is usually determined by what remains after your bad habits are subtracted from your good ones.

CASS is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in CASS's volatility from 18 Sep, 2018 to 6 Dec, 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 CASS has significant positive skewness in it's return distribution. This indicates that investors can expect CASS to recover from drawdowns quickly. Which makes CASS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in CASS), two large cap instruments that deserve special mention are V and UNH. They have significantly outperformed the overall market.

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