23.3 -0.11 (-0.47%) Sell

Want to invest in CEVA? Avoid as it was among the worst performers

13 min read

CEVA INC was among the worst performers on Tuesday. It returned -0.47% to close at 23.3. On a day when the overall market breadth was 35%, it closed higher than 75% of the market. In comparison, the benchmark SP500 index closed today at -0.0004%.

[Themes containing CEVA]

CEVA showed a strong down trend over the last 3 months. During this period CEVA returned -18.67% and saw a maximum drawdown of -20.61%. There were 2 short signals during this period that returned a cumulative of +10.26% to investors.


CEVA has been underperforming the SP500 index in recent time, after having outperformed till 27 Nov, 2017. Over the last 2 years 11 months and 7 days, CEVA underperformed the SP500 index on 51% days.

CEVA returned losses on 55% days in the last three months. During this time, it delivered on average -0.27% per day. It delivered it's best daily return of +15.19%, during this period, on Thursday, 8 Nov, 2018. There was initially a bearish trend during this period which started on 2 Oct, 2018 and went on till 8 Oct, 2018. The trend delivered -13.75% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 2 Nov, 2018. This bullish trend delivered +12.28% to investors.

On monthly basis, CEVA delivered losses in more months over the last year, than profits. CEVA delivered profits less regularly than SP500 index. CEVA was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -16.48% compared to -7.28% returned by SP500 index in Oct 2018. CEVA 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 -32.44%.

A wise person should have money in their head, but not in their heart.
-- Jonathan Swift

CEVA is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in CEVA's volatility from 2 Oct, 2018 to 9 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that CEVA has significant positive skewness in it's return distribution. This indicates that investors can expect CEVA to recover from drawdowns quickly. Which makes CEVA 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 CEVA. Therefore, SP500 must receive a lower allocation than CEVA in your portfolio. SP500 index usually has shorter drawdown period than CEVA.

Based on your interest in CEVA you may find it interesting to know that TPNL, TNDM and HEAR have all shown remarkable performance this year and deserve to be on every investor's watchlist.

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