Search for alternative investments is on for CREE investors as it underperforms
14 Dec, 201813 min read
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CREE ranked among the worst performers today. On a longer term basis, investors in CREE INC made +0.03% per day. Friday's performance of -3.03% was a underperformance compared to it's daily average.
Buy-and-Hold investors in CREE experienced a maximum drawdown of -18.23% over the last three months. It increased by +8.83% during this bullish trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +14.14%.
CREE has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 23 Aug, 2017 to 9 Aug, 2018. Over the last 2 years 11 months and 10 days, CREE outperformed the SP500 index on 52% days.
During the last three months CREE delivered losses on 51% days. However, it still managed to end this period in a profit. It's best return during this period (of +7.79%) was on Friday, 9 Nov, 2018. While it's worst loss in the same period (of -8.45%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 9 losing days, which started on 1 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -11.49% of investor capital.
During the last year CREE had 7 profitable months and 5 loss making months. CREE returned profits in fewer months than SP500 index. CREE significantly outperformed SP500 index in May 2018, when it returned +24.92% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CREE had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year.
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CREE 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 CREE's volatility from 4 Oct, 2018 to 24 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 CREE has significant positive skewness in it's return distribution. This indicates that investors can expect CREE to recover from drawdowns quickly. Which makes CREE a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Investors trading in CREE derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.
SP500 index has more chance of extreme outcomes than CREE. Therefore, SP500 must receive a lower allocation than CREE in your portfolio. SP500 index usually has shorter drawdown period than CREE.
Based on your interest in CREE you may find it interesting to know that ABMD is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.
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