67.45 +0.05 (+0.07%) Sell

Profit booking on the minds of CTWS investors as it shows marginal outperformance

13 min read

CONNECTICUT WATER SERVICE INC is looking better than most other alternatives today. It grew by +0.07% to close at 67.45. During the last week it lost -0.55% and saw a maximum drawdown of -0.87% before bouncing back.

[Themes containing CTWS]

Buy-and-Hold investors in CTWS experienced a maximum drawdown of -3.65% over the last three months. It lost -1.79% during this down trending period. There were both Long and Short signals during this period, where the short signals were marginally more profitable than the long signals. The net profit from Short signals was +0.55%.


CTWS has been underperforming the SP500 index in recent time, after having outperformed till 23 Nov, 2018. Over the last 2 years 11 months and 7 days, CTWS outperformed the SP500 index on 51% days.

During the last three months CTWS delivered profits on 53% days. However, it still managed to end this period in a loss. It's best return during this period (of +0.81%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -2.63%) was on Tuesday, 4 Dec, 2018. There was initially a bullish trend during this period which started on 12 Oct, 2018 and went on till 18 Oct, 2018. The bullish trend returned +0.88% to investors. This was followed by a bearish trend that started on 19 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -1.05% of investor capital.

CTWS had 7 profitable and 5 loss making months over the last year. During the last year, CTWS underperformed SP500 index on monthly return basis. CTWS significantly outperformed SP500 index in Mar 2018, when it returned +17.24% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CTWS had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

Live as if you were to die tomorrow. Learn as if you were to live forever.
-- Mahatma Gandhi

CTWS 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 CTWS's volatility from 12 Sep, 2018 to 11 Dec, 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 CTWS 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 CTWS. Therefore, SP500 must receive a lower allocation than CTWS in your portfolio. SP500 index usually has shorter drawdown period than CTWS.

Based on your interest in CTWS you may find it interesting to know that EHC, AAXN and BURL are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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