8.44 -0.06 (-0.71%) Buy

Looking to invest in CSU? Look for alternatives because it trailed the broader market

13 min read

CAPITAL SENIOR LIVING CORP was among the worst performers today. It fell by -0.71% to close at 8.44. It's recent 5 day performance has been -1.16%, +1.65%, -3.64%, -5.59% and +3.33%.

[Themes containing CSU]

CSU showed a bearish trend over the last 3 months. During this period CSU fell by -6.33% and saw a maximum drawdown of -21.44%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in CSU till volatility reduces and a clear trend emerges.


CSU has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 6 Jan, 2016 to 20 Aug, 2018. Over the last 2 years 11 months and 7 days, CSU underperformed the SP500 index on 51% days.

CSU returned losses on 54% days in the last three months. During this time, it delivered on average -0.04% per day. It delivered it's worst daily return of -12.96%, during this period, on Wednesday, 7 Nov, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 29 Oct, 2018 and went on till 5 Nov, 2018. This bullish trend returned +14.48% to investors.

During the last year CSU had 3 profitable months and 9 loss making months. CSU returned profits in fewer months than SP500 index. CSU was also a more risky investment than SP500 index as it's worst month in the last year, Jan 2018, returned -19.83% compared to -7.28% returned by SP500 index in Oct 2018. CSU had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from May 2018 to Aug 2018) during which period it delivered -26.58%.

Finance is not merely about making money. It's about achieving our deep goals and protecting the fruits of our labor. It's about stewardship and, therefore, about achieving the good society.
-- Robert J. Shiller

CSU 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 CSU's volatility from 14 Sep, 2018 to 7 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that CSU has significant positive skewness in it's return distribution. This indicates that investors can expect CSU to recover from drawdowns quickly. Which makes CSU a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in CSU), CSCO is a large cap that deserves to be closely tracked for investment opportunities.

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