27.37 -0.32 (-1.16%) Buy

CTS investors herd to book profits while the going is good

13 min read

CTS CORP was among the worst performers today. It returned -1.16% to close at 27.37. It's recent 5 day performance has been +1.06%, -0.11%, -0.44%, -1.78% and -0.67%.

[Themes containing CTS]

CTS showed a strong down trend over the last 3 months. During this period CTS returned -24.39% and saw a maximum drawdown of -27.18%. There was a short signal during this period which returned +17.17%.


CTS has been underperforming the SP500 index in recent time, after having outperformed till 6 Jul, 2018. Over the last 2 years 11 months and 9 days, CTS outperformed the SP500 index on 48% days. Which indicates that on days CTS outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

During the last three months CTS was mostly loss making and delivered on average -0.42% per day. It's best return during this period (of +3.27%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -5.27%) was on Tuesday, 4 Dec, 2018. There was initially a bullish trend during this period which started on 14 Sep, 2018 and went on till 18 Sep, 2018. The bullish trend returned +1.24% to investors. This was followed by a bearish trend that started on 4 Oct, 2018 and ended on 15 Oct, 2018. This bearish trend lost -10.79% of investor capital.

On monthly basis, CTS delivered profits in more months over the last year, than losses. CTS delivered profits less regularly than SP500 index. CTS was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -20.16% compared to -7.28% returned by SP500 index in Oct 2018. CTS had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

An investment in knowledge pays the best interest.
-- Benjamin Franklin

CTS 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 CTS's volatility from 25 Sep, 2018 to 29 Oct, 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 CTS 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 CTS. Therefore, SP500 must receive a lower allocation than CTS in your portfolio. SP500 index usually has shorter drawdown period than CTS.

Based on your interest in CTS you may find it interesting to know that NNI and USPH have both performed similar to CTS and can be considered by investors as alternative investment options.

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