51.1 -0.21 (-0.41%) Sell

Don't even consider investing in CBS now, it is a really dangerous investment now

13 min read

CBS CORP has destroyed investor wealth on Friday. It fell by -0.41% to close at 51.1. It is currently trading -15% below it's 52 week high of 60.53.

[Themes containing CBS]

CBS showed a bearish trend over the last 3 months. During this period CBS fell by -7.43% and saw a maximum drawdown of -12.63%. There was a short signal during this period which returned +5.05%.


CBS has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 5 Apr, 2017 to 4 Sep, 2018. Over the last 2 years 11 months and 3 days, CBS underperformed the SP500 index on 48% days. Which indicates that on days CBS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months CBS delivered profits on 53% days. However, it still managed to end this period in a loss. It's best return during this period (of +3.9%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -5.3%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 12 Oct, 2018 and went on till 19 Oct, 2018. This bullish trend returned +6.12% to investors.

During the last year CBS had 5 profitable months and 7 loss making months. CBS returned profits in fewer months than SP500 index. CBS significantly outperformed SP500 index in Jun 2018, when it returned +11.61% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CBS had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Jan 2018 to Apr 2018) during which period it delivered -16.65%.

The challenge is not to pick the best investment. The challenge is to pick the right investment.
-- Don Connelly

CBS 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 CBS's volatility from 10 Sep, 2018 to 25 Sep, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that CBS 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.

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

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

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

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