CENTRAL GARDEN & PET CO

33.05 -0.94 (-2.85%) Sell

CENT investors looking to preserve capital

13 min read

CENTRAL GARDEN & PET CO delivered massive losses today. It returned -2.85% to close at 33.05. During the last week it returned -2.28% and saw a maximum drawdown of -3.19% before bouncing back.

[Themes containing CENT]

Buy-and-Hold investors in CENT experienced a maximum drawdown of -22.74% over the last three months. It returned -16.01% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +16.01% for investors.

Trend

CENT has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, CENT outperformed the SP500 index on 51% days.

CENT returned losses on 64% days in the last three months. During this time, it delivered on average -0.26% per day. It delivered it's worst daily return of -4.64%, during this period, on Friday, 12 Oct, 2018. There was initially a bearish trend during this period which started on 21 Sep, 2018 and went on till 1 Oct, 2018. The trend delivered -8.75% losses to investors. This was followed by a bullish trend that started on 28 Nov, 2018 and ended on 3 Dec, 2018. This bullish trend delivered +12.69% to investors.

On monthly basis, CENT delivered losses in more months over the last year, than profits. CENT delivered profits less regularly than SP500 index. CENT significantly outperformed SP500 index in Mar 2018, when it returned +11.31% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CENT had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Jul 2018 to Oct 2018) during which period it delivered -27.86%.

"My father, being a Scotsman, taught me to look after finances. I'm shrewd. Some people may call me tight.

CENT 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 CENT's volatility from 19 Sep, 2018 to 7 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 CENT 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 CENT. Therefore, SP500 must receive a lower allocation than CENT in your portfolio. SP500 index usually has shorter drawdown period than CENT.

On a general note (since you are interested in CENT), three mid cap instruments that deserve special mention are LULU, TWTR and SQ. They have all outperformed the market and must be closely watched for investment opportunities.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Following
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{detail.name}} {{detail.trend}} 
 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter