CWST investors rejoice as it outperforms
14 Dec, 201813 min read
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CASELLA WASTE SYSTEMS INC outperformed today. It surged by +3.55% to close at 30.37. It's recent 5 day performance has been -0.64%, -0.51%, +0.07%, -4.39% and -4.58%.
CWST is currently in a bullish trend. The previous long signal in CWST has not been profitable for investors in general. If you are invested in CWST at current levels please make sure that your allocation is limited and that your portfolio is well diversified.
CWST has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 5 Feb, 2016 to 29 Nov, 2018. Over the last 2 years 11 months and 10 days, CWST outperformed the SP500 index on 53% days.
CWST was profitable on 50% days in the last three months. During this time, it delivered on average -0.06% per day. It delivered it's worst daily return of -6.35%, during this period, on Friday, 2 Nov, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 11 Oct, 2018 and went on till 18 Oct, 2018. This bullish trend returned +11.0% to investors.
The last 12 months saw CWST's investors making profits in 8 months and incurring losses in 4 months. During the last year, CWST and SP500 index had the same number of profitable months. CWST significantly outperformed SP500 index in Jan 2018, when it returned +10.45% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CWST and SP500 index, both had periods of 6 consecutive profitable months. It is interesting to note that both CWST and SP500 index significantly outperform during months when quarterly/annual results are announced.
The only way to beat an index is to invest in something other than the index. Why would you, when the only source of long-term risk and return data is the index ?
-- Hebner, Mark.
CWST 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 surge in CWST's volatility from 28 Sep, 2018 to 6 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that CWST 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 CWST. Therefore, SP500 must receive a lower allocation than CWST in your portfolio. SP500 index usually has shorter drawdown period than CWST.
Based on your interest in CWST you may find it interesting to know that UNH is a large cap that has shown remarkable performance and deserves to be on every investors' watchlist.
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