127.53 -5.13 (-4.02%) Sell

CNC investors dump it

13 min read

CENTENE CORP has destroyed investor wealth today. It fell by -4.02% to close at 127.53. During the last week it fell by -3.72% and saw a maximum drawdown of -5.03% before bouncing back.

[Themes containing CNC]

Buy-and-Hold investors in CNC experienced a maximum drawdown of -14.73% over the last three months. It fell by -10.03% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +9.44%.


CNC has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 11 Nov, 2016 to 3 Dec, 2018. Over the last 2 years 11 months and 10 days, CNC outperformed the SP500 index on 53% days.

CNC returned losses on 54% days in the last three months. During this time, it delivered on average -0.14% per day. It delivered it's best daily return of +9.23%, during this period, on Wednesday, 7 Nov, 2018. The longest stort-term trend during this period was 5 losing days, which started on 9 Nov, 2018 and ended on 15 Nov, 2018. This bearish trend lost -5.5% of investor capital.

During the last year CNC had 8 profitable months and 4 loss making months. Profitable number of months of CNC and SP500 index were the same. CNC significantly outperformed SP500 index in Aug 2018, when it returned +12.39% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CNC and SP500 index, both had periods of 6 consecutive profitable months.

"I am particularly pleased to see that the Bendheim Center for Finance is thriving.

CNC 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 surge in CNC's volatility from 3 Oct, 2018 to 7 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 CNC has significant positive skewness in it's return distribution. This indicates that investors can expect CNC to recover from drawdowns quickly. Which makes CNC 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 CNC. Therefore, SP500 must receive a lower allocation than CNC in your portfolio. CNC usually has shorter drawdown period than the SP500 index.

Based on your interest in CNC you may find it interesting to know that BIIB and ~OILANDGASSERVS have both performed similar to CNC and can be considered by investors as alternative investment options.

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