Don't even consider investing in CPS now, it is a high risk investment
07 Dec, 201813 min read
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COOPER-STANDARD HOLDINGS INC. was among the worst performers today. It delivered -5.44% to close at 67.14. It's recent 5 day performance has been -0.55%, -4.65%, +2.39%, +0.65% and -2.23%.
CPS showed a strong bearish trend over the last 3 months. During this period CPS delivered -49.53% and saw a maximum drawdown of -49.53%. There was a short signal during this period which returned +49.53%.
CPS has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 2 Aug, 2018 to 7 Dec, 2018. One must note that CPS is currently at it's worst performance to the SP500 index which makes it a bad investment candidate. Over the last 2 years 11 months and 3 days, CPS underperformed the SP500 index on 48% days. Which indicates that on days CPS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
During the last three months CPS was mostly loss making and delivered on average -1.0% per day. It's best return during this period (of +4.39%) was on Monday, 5 Nov, 2018. While it's worst loss in the same period (of -24.09%) was on Friday, 2 Nov, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 12 Nov, 2018 and went on till 16 Nov, 2018. This bullish trend returned +2.94% to investors.
The last 12 months saw CPS's investors making profits in 7 months and incurring losses in 5 months. CPS was less consistent in delivering monthly returs than SP500 index. CPS was also a more risky investment than SP500 index as it's worst month in the last year, Nov 2018, returned -21.08% compared to -7.28% returned by SP500 index in Oct 2018. CPS and SP500 index, both had periods of 6 consecutive profitable months. It is interesting to note that both CPS and SP500 index significantly outperform during months when quarterly/annual results are announced.
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CPS 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 CPS's volatility from 10 Sep, 2018 to 2 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that CPS has significant positive skewness in it's return distribution. This indicates that investors can expect CPS to recover from drawdowns quickly. Which makes CPS 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 CPS. Therefore, SP500 must receive a lower allocation than CPS in your portfolio. CPS usually has shorter drawdown period than the SP500 index.
Based on your interest in CPS you may find it interesting to know that TYHT has shown remarkable performance and deserves to be on every investors' watchlist.
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