26.22 +0.35 (+1.35%) Sell

CORE does a dead cat bounce, it's still too early to buy into it

13 min read

CORE-MARK HOLDING COMPANY, INC. was among the best performers today. It returned +1.35% to close at 26.22. It's recent 5 day performance has been +2.62%, +0.96%, +0.93%, -1.51% and -2.79%.

[Themes containing CORE]

CORE showed a strong down trend over the last 3 months. During this period CORE returned -22.1% and saw a maximum drawdown of -37.24%. There was a short signal during this period which returned +13.72%.


CORE has been underperforming the SP500 index in recent time, after having outperformed till 11 Jul, 2016. Over the last 2 years 11 months and 9 days, CORE underperformed the SP500 index on 48% days. Which indicates that on days CORE underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months CORE was mostly loss making and delivered on average -0.34% per day. It's best return during this period (of +3.95%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -19.82%) was on Tuesday, 6 Nov, 2018. There was initially a bullish trend during this period which started on 25 Sep, 2018 and went on till 1 Oct, 2018. The bullish trend returned +2.2% to investors. This was followed by a bearish trend that started on 31 Oct, 2018 and ended on 7 Nov, 2018. This bearish trend lost -26.09% of investor capital.

On monthly basis, CORE delivered losses in more months over the last year, than profits. CORE delivered profits less regularly than SP500 index. CORE significantly outperformed SP500 index in Aug 2018, when it returned +47.93% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CORE had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both CORE and SP500 index significantly outperform during months when quarterly/annual results are announced.

When buying shares, ask yourself, would you buy the whole company?
-- Rene Rivkin

CORE 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 CORE's volatility from 8 Oct, 2018 to 6 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

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

Based on your interest in CORE you may find it interesting to know that IMTE and GNK are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).

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