Joy for CSS investors as it marginally outperforms
11 Dec, 201813 min read
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CSS INDUSTRIES INC outperformed today. It surged by +2.45% to close at 11.3. During the last week it surged by +3.2% and saw a maximum drawdown of -0.09% before bouncing back.
CSS is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +11.96% for investors.
CSS has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 10 Feb, 2016 to 30 Nov, 2018. Over the last 2 years 11 months and 7 days, CSS underperformed the SP500 index on 52% days.
CSS returned losses on 56% days in the last three months. During this time, it delivered on average -0.31% per day. It delivered it's worst daily return of -5.46%, during this period, on Wednesday, 28 Nov, 2018. The longest stort-term trend during this period was 6 losing days, which started on 24 Sep, 2018 and ended on 1 Oct, 2018. This bearish trend lost -8.4% of investor capital.
The last 12 months saw CSS's investors making profits in 3 months and incurring losses in 9 months. CSS was less consistent in delivering monthly returs than SP500 index. CSS was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -29.63% compared to -7.28% returned by SP500 index in Oct 2018. CSS had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Jan 2018 to May 2018) during which period it delivered -48.11%.
An investment in knowledge pays the best interest.
-- Benjamin Franklin
CSS 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 fall in CSS's volatility from 19 Sep, 2018 to 28 Sep, 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 CSS has significant negative skewness in it's return distribution. This indicates that CSS is very risky for short-term investment and can significantly underperform for long durations.
SP500 index has more chance of extreme outcomes than CSS. Therefore, SP500 must receive a lower allocation than CSS in your portfolio. SP500 index usually has shorter drawdown period than CSS.
On a general note (since you are interested in CSS), three small cap instruments that deserve special mention are ZBRA, AAXN and EHC. They have all outperformed the market and must be closely watched for investment opportunities.
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