SALESFORCE COM INC

141.14 +1.06 (+0.75%) Sell

CRM investors looking to add more to current positions

13 min read

SALESFORCE COM INC delivered good returns today. It grew by +0.75% to close at 141.14. During the last week it lost -1.39% and saw a maximum drawdown of -4.3% before bouncing back.

[Themes containing CRM]

Buy-and-Hold investors in CRM experienced a maximum drawdown of -24.78% over the last three months. It lost -10.38% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.

Trend

CRM has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 9 days, CRM outperformed the SP500 index on 55% days.

During the last three months CRM delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +10.27%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -8.71%) was on Monday, 19 Nov, 2018. There was initially a bullish trend during this period which started on 20 Sep, 2018 and went on till 25 Sep, 2018. The bullish trend returned +3.87% to investors. This was followed by a bearish trend that started on 8 Oct, 2018 and ended on 10 Oct, 2018. This bearish trend lost -11.44% of investor capital.

CRM had 9 profitable and 3 loss making months over the last year. CRM was profitable in more months than SP500 index. CRM was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -14.15% compared to -7.28% returned by SP500 index in Oct 2018. CRM and SP500 index, both had periods of 6 consecutive profitable months.

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

CRM 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 CRM's volatility from 14 Sep, 2018 to 20 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 CRM has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

Investors trading in CRM derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in CRM you may find it interesting to know that TNDM and ECYT have both shown remarkable performance this year and deserve to be on every investors' watchlist.

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