8.69 -0.54 (-6.26%) Sell

Doubt in the minds of CDZI investors as it significantly underperforms

13 min read

CADIZ INC ranked among the worst performers today. It fell by -6.26% to close at 8.69. It's recent 5 day performance has been -3.13%, -3.14%, -1.59%, +2.66% and -0.81%.

[Themes containing CDZI]

CDZI is currently in a bearish trend. The current bearish signal has generated a profit of +17.63% for investors in the last three months.


CDZI has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 23 Mar, 2016 to 3 May, 2017. Over the last 2 years 11 months and 10 days, CDZI outperformed the SP500 index on 50% days. Which indicates that on days CDZI outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

CDZI returned losses on 56% days in the last three months. During this time, it delivered on average -0.29% per day. It delivered it's worst daily return of -6.26%, during this period, on Monday, 17 Dec, 2018. The longest stort-term trends during this period were 5 profitable and losing days. The bullish trend (which returned +4.17%) started on 24 Sep, 2018 and went on till 28 Sep, 2018 while the bearish trend (which returned -9.99%) started on 3 Dec, 2018 and went on till 10 Dec, 2018.

During the last year CDZI had 5 profitable months and 7 loss making months. CDZI returned profits in fewer months than SP500 index. CDZI was also a more risky investment than SP500 index as it's worst month in the last year, Aug 2018, returned -28.36% compared to -7.28% returned by SP500 index in Oct 2018. CDZI had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Feb 2018 to May 2018) during which period it delivered -11.43%. It is interesting to note that both CDZI and SP500 index significantly outperform during months when quarterly/annual results are announced.

Formal education will make you a living; self-education will make you a fortune.
-- Jim Rohn

CDZI 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 fall in CDZI's volatility from 21 Sep, 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 CDZI 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 CDZI. Therefore, SP500 must receive a lower allocation than CDZI in your portfolio. SP500 index usually has shorter drawdown period than CDZI.

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

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