17.04 -0.1 (-0.58%) Sell

Prayers for CRCM investors as it was among the worst performers

13 min read

CARE.COM INC has destroyed investor wealth today. It delivered -0.58% to close at 17.04. During the last week it increased by +0.77% and saw a maximum drawdown of -1.73% before bouncing back.

[Themes containing CRCM]

Buy-and-Hold investors in CRCM experienced a maximum drawdown of -24.37% over the last three months. It delivered -15.22% 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.


CRCM has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 5 Feb, 2016 to 6 Jun, 2018. Over the last 2 years 11 months and 10 days, CRCM outperformed the SP500 index on 50% days. Which indicates that on days CRCM outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

During the last three months CRCM was mostly loss making and delivered on average -0.2% per day. It's best return during this period (of +5.41%) was on Friday, 12 Oct, 2018. While it's worst loss in the same period (of -17.95%) was on Wednesday, 10 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 4 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -23.66% of investor capital.

The last 12 months saw CRCM's investors making profits in 5 months and incurring losses in 7 months. CRCM was less consistent in delivering monthly returs than SP500 index. CRCM significantly outperformed SP500 index in May 2018, when it returned +32.95% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CRCM had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Jan 2018 to Apr 2018) during which period it delivered -15.79%.

Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did do.
-- Mark Twain

CRCM is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in CRCM's volatility from 19 Sep, 2018 to 11 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 CRCM has significant negative skewness in it's return distribution. This indicates that CRCM is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in CRCM you may find it interesting to know that DFBG, TNDM and NFEC have all shown remarkable performance this year and deserve to be on every investor's watchlist.

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