CAMDEN PROPERTY TRUST

91.5 -0.26 (-0.28%) Sell

Search for alternative investments is on for CPT investors as it underperforms broader market

13 min read

CAMDEN PROPERTY TRUST trailed the broader market on Friday. It returned -0.28% to close at 91.5. It is currently trading +16% above it's 52 week low of 78.55 and is down only -4% from it's 52 week high.

[Themes containing CPT]

CPT is currently in a down trend. Over the last three months trading short signals has not been a profitable strategy for CPT's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -3.72%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to CPT.

Trend

CPT has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, CPT underperformed the SP500 index on 48% days. Which indicates that on days CPT underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

CPT was profitable on 53% days in the last three months. During this time, it delivered on average -0.05% per day. It delivered it's worst daily return of -3.84%, during this period, on Friday, 26 Oct, 2018. There was initially a bearish trend during this period which started on 10 Oct, 2018 and went on till 12 Oct, 2018. The trend delivered -5.55% losses to investors. This was followed by a bullish trend that started on 5 Nov, 2018 and ended on 8 Nov, 2018. This bullish trend delivered +3.44% to investors.

On monthly basis, CPT delivered profits in more months over the last year, than losses. CPT delivered profits less regularly than SP500 index. CPT was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -7.91% compared to -7.28% returned by SP500 index in Oct 2018. CPT and SP500 index, both had periods of 6 consecutive profitable months.

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CPT 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 CPT's volatility from 18 Sep, 2018 to 31 Oct, 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 CPT has significant positive skewness in it's return distribution. This indicates that investors can expect CPT to recover from drawdowns quickly. Which makes CPT a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

CPT has more chance of extreme outcomes than the SP500 index. Therefore, CPT must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than CPT.

On a general note (since you are interested in CPT), if you are evaluating CPT as an investment candidate, then you should read about ~OFFICESPACE which has delivered similar performance and can help diversify your portfolio.

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