7.42 -0.06 (-0.8%) Sell

Waiting to invest in CZR? Avoid at the moment as it has destroyed investor wealth

13 min read

CZR has destroyed investor wealth today. On a longer term basis, investors in CAESARS ENTERTAINMENT CORP made +0.05% per day. Thursday's performance of -0.8% was a underperformance compared to it's daily average.

[Themes containing CZR]

CZR showed a strong bearish trend over the last 3 months. During this period CZR delivered -30.33% and saw a maximum drawdown of -34.52%. There were 2 short signals during this period that returned a cumulative of +16.65% to investors.


CZR has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 18 Jul, 2017 to 11 Dec, 2018. Over the last 2 years 11 months and 9 days, CZR underperformed the SP500 index on 50% days. Which indicates that on days CZR underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

CZR returned losses on 64% days in the last three months. During this time, it delivered on average -0.51% per day. It delivered it's best daily return of +12.21%, during this period, on Wednesday, 17 Oct, 2018. The longest stort-term trend during this period was 8 losing days, which started on 29 Nov, 2018 and ended on 11 Dec, 2018. This bearish trend lost -18.63% of investor capital.

The last 12 months saw CZR's investors making profits in 5 months and incurring losses in 7 months. CZR was less consistent in delivering monthly returs than SP500 index. CZR was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -15.37% compared to -7.28% returned by SP500 index in Oct 2018. CZR had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered -29.09%. It is interesting to note that both CZR and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Of course, it is a little bit disingenuous to hint that hard work is the only thing you need to achieve success.

CZR 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 CZR's volatility from 3 Oct, 2018 to 17 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 CZR 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.

Investors trading in CZR derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.

SP500 index has more chance of extreme outcomes than CZR. Therefore, SP500 must receive a lower allocation than CZR in your portfolio. SP500 index usually has shorter drawdown period than CZR.

On a general note (since you are interested in CZR), NSPR has performed really well and deserves to be closely tracked for investment opportunities.

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.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