90.97 +1.73 (+1.9%) Sell

Are you evaluating investing in CVGW? Consider as it managed to marginally outperform the broader market

13 min read

CVGW delivered stellar performance today. On a longer term basis, investors in CALAVO GROWERS INC made +0.1% per day. Tuesday's performance of +1.9% was a significant outperformance compared to it's daily average.

[Themes containing CVGW]

CVGW showed a strong down trend over the last 3 months. During this period CVGW lost -10.55% and saw a maximum drawdown of -14.78%. There were 3 short signals during this period that returned a cumulative of +7.82% to investors.


CVGW has been underperforming the SP500 index in recent time, after having outperformed till 7 Sep, 2018. Over the last 2 years 11 months and 7 days, CVGW outperformed the SP500 index on 49% days. Which indicates that on days CVGW outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

CVGW returned losses on 52% days in the last three months. During this time, it delivered on average -0.17% per day. It delivered it's best daily return of +4.02%, during this period, on Tuesday, 16 Oct, 2018. There was initially a bearish trend during this period which started on 19 Sep, 2018 and went on till 26 Sep, 2018. The trend delivered -9.13% losses to investors. This was followed by a bullish trend that started on 1 Nov, 2018 and ended on 7 Nov, 2018. This bullish trend delivered +2.95% to investors.

CVGW had 7 profitable and 5 loss making months over the last year. During the last year, CVGW underperformed SP500 index on monthly return basis. CVGW significantly outperformed SP500 index in Aug 2018, when it returned +14.43% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CVGW had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both CVGW and SP500 index significantly outperform during months when quarterly/annual results are announced.

"There are two kinds of investors, be they large or small: those who don't know where the market is headed, and those who don't know that they don't know. Then again, there is a third type of investor -the investment professional, who indeed knows that he or she doesn't know, but whose livelihood depends upon appearing to know.

CVGW 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 CVGW's volatility from 2 Oct, 2018 to 11 Dec, 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 CVGW 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 CVGW. Therefore, SP500 must receive a lower allocation than CVGW in your portfolio. SP500 index usually has shorter drawdown period than CVGW.

Based on your interest in CVGW you may find it interesting to know that EPIX is highly volatile and investors investing in it must take extreme caution. Consider either reducing your exposure to EPIX or sufficiently diversifying your portfolio.

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