Waiting to invest in CSGP? Look for alternatives because it trailed the broader market
07 Dec, 201813 min read
Share with friends 
COSTAR GROUP INC was among the worst performers on Friday. It delivered -2.29% to close at 366.85. It is currently trading -17% below it's 52 week high of 446.72.
CSGP showed a strong bearish trend over the last 3 months. During this period CSGP delivered -15.86% and saw a maximum drawdown of -22.01%. There was a short signal during this period which returned +8.27%.
CSGP has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 3 Jan, 2017 to 4 Sep, 2018. Over the last 2 years 11 months and 3 days, CSGP outperformed the SP500 index on 54% days.
During the last three months CSGP was mostly loss making and delivered on average -0.25% per day. It's best return during this period (of +4.54%) was on Monday, 26 Nov, 2018. While it's worst loss in the same period (of -6.12%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 23 Oct, 2018 and ended on 30 Oct, 2018. This bearish trend lost -10.01% of investor capital.
The last 12 months saw CSGP's investors making profits in 8 months and incurring losses in 4 months. During the last year, CSGP and SP500 index had the same number of profitable months. CSGP significantly outperformed SP500 index in Jan 2018, when it returned +16.62% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CSGP and SP500 index, both had periods of 6 consecutive profitable months.
"I grew up in Finance.
CSGP is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in CSGP's volatility from 10 Sep, 2018 to 31 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that CSGP 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.
SP500 index has more chance of extreme outcomes than CSGP. Therefore, SP500 must receive a lower allocation than CSGP in your portfolio. SP500 index usually has shorter drawdown period than CSGP.
Based on your interest in CSGP you may find it interesting to know that AMZN is a large cap that has shown remarkable performance and deserves to be on every investors' watchlist.
... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.
All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.
We want to empower investors with all the tools and analysis required by them to make a rational investment decision.
If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute