13.59 -0.21 (-1.52%) Sell

CODI is a falling knife, continues to bleed every investor trying to catch it

13 min read

COMPASS DIVERSIFIED HOLDINGS was among the worst performers on Friday. It delivered -1.52% to close at 13.59 which is it's 52 week low, down -25% from it's 52 week high.

[Themes containing CODI]

CODI is currently in a bearish trend. The current bearish signal has generated a profit of +21.45% for investors in the last three months.


CODI has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 28 Oct, 2016 to 13 Dec, 2018. Over the last 2 years 11 months and 10 days, CODI underperformed the SP500 index on 50% days. Which indicates that on days CODI underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months CODI was mostly loss making and delivered on average -0.46% per day. It's best return during this period (of +5.86%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -5.25%) was on Thursday, 1 Nov, 2018. The longest stort-term trend during this period was 8 losing days, which started on 4 Dec, 2018 and ended on 14 Dec, 2018. This bearish trend lost -12.07% of investor capital.

The last 12 months saw CODI's investors making profits in 5 months and incurring losses in 7 months. CODI was less consistent in delivering monthly returs than SP500 index. CODI was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -12.17% compared to -7.28% returned by SP500 index in Oct 2018. CODI had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year.

Some of the people in finance touch enormous parts of the economy.
-- Stephen A. Schwarzman

CODI 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 CODI's volatility from 17 Sep, 2018 to 5 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 CODI has significant positive skewness in it's return distribution. This indicates that investors can expect CODI to recover from drawdowns quickly. Which makes CODI 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 CODI. Therefore, SP500 must receive a lower allocation than CODI in your portfolio. SP500 index usually has shorter drawdown period than CODI.

Based on your interest in CODI you may find it interesting to know that TNDM and PRQR have both shown remarkable performance this year and deserve to be on every investors' watchlist.

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