4.71 +0.03 (+0.64%) Sell

CX shows sign of weakness as investors do cost averaging

13 min read

CEMEX SAB DE CV (Foreign) ranked better than it's peers on Wednesday. It delivered +0.64% to close at 4.71. On a day when the overall market breadth was 35%, it closed higher than 13% of the market. In comparison, the benchmark SP500 index closed today at +0.54%.

[Themes containing CX]

CX showed a strong bearish trend over the last 3 months. During this period CX fell by -33.38% and saw a maximum drawdown of -36.58%. There was a short signal during this period which returned +26.64%.


CX has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 12 Jul, 2017 to 26 Nov, 2018. Over the last 2 years 11 months and 8 days, CX underperformed the SP500 index on 50% days. Which indicates that on days CX underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months CX was mostly loss making and delivered on average -0.61% per day. It's best return during this period (of +7.34%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -7.21%) was on Monday, 29 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 22 Oct, 2018 and ended on 29 Oct, 2018. This bearish trend lost -18.33% of investor capital.

During the last year CX had 5 profitable months and 7 loss making months. CX returned profits in fewer months than SP500 index. CX was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -29.11% compared to -7.28% returned by SP500 index in Oct 2018. CX had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -34.65%. It is interesting to note that both CX and SP500 index significantly outperform during months when quarterly/annual results are announced.

"I am favor of cutting taxes under any circumstances and for any excuse, for any reason, whenever it's possible.

CX 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 CX's volatility from 13 Sep, 2018 to 1 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 CX 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 CX. Therefore, SP500 must receive a lower allocation than CX in your portfolio. SP500 index usually has shorter drawdown period than CX.

Based on your interest in CX you may find it interesting to know that FIX, GDI and CLCT have all performed similar to CX and qualify as alternative investment candidates that must be evaluated for diversification.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{detail.name}} {{detail.trend}} 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter