CARBO CERAMICS INC

3.63 -0.16 (-4.47%) Sell

The party never started for CRR investors as it significantly underperforms

13 min read

CARBO CERAMICS INC has destroyed investor wealth today. It returned -4.47% to close at 3.63. It's recent 5 day performance has been -6.4%, +3.05%, -3.43%, -4.9% and -2.5%.

[Themes containing CRR]

CRR is currently in a down trend. The current bearish signal has generated a profit of +54.57% for investors in the last three months.

Trend

CRR has been underperforming the SP500 index in recent time, after having outperformed till 7 Mar, 2016. Over the last 2 years 11 months and 10 days, CRR underperformed the SP500 index on 53% days.

CRR returned losses on 69% days in the last three months. During this time, it delivered on average -1.19% per day. It delivered it's worst daily return of -8.45%, during this period, on Friday, 23 Nov, 2018. There was initially a bearish trend during this period which started on 22 Oct, 2018 and went on till 29 Oct, 2018. The trend delivered -20.45% losses to investors. This was followed by a bullish trend that started on 14 Nov, 2018 and ended on 19 Nov, 2018. This bullish trend delivered +8.97% to investors.

On monthly basis, CRR delivered losses in more months over the last year, than profits. CRR delivered profits less regularly than SP500 index. CRR was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -34.46% compared to -7.28% returned by SP500 index in Oct 2018. CRR had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Aug 2018 to Dec 2018) during which period it delivered -83.85%.

"Stay on top of your finances. Don't leave that up to others.

CRR is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in CRR's volatility from 18 Sep, 2018 to 25 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 CRR has significant negative skewness in it's return distribution. This indicates that CRR is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in CRR), two large cap instruments that deserve special mention are CSCO and AMZN. They have significantly outperformed the overall market.

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