Or has something to do with compounding. As stock falls you earn less and less. I prefer to call a bottom and buy , or call the top and realise profit. Looks like CRR is having last wave down . I'll probably realise it without profit as I failed to take 13.5 when it topped, hoping for more. And time is ticking on option (21 apr)
Most stocks will get more volatile as they sell off, thus producing similar dollar returns. Unless you mean something else?
I am not saying one or the other way is "right", there are pros and cons. There are long/short funds out there that force managers to have equal amounts of longs and shorts. You end up with high conviction short that do very well in downturns. That approach, predictably, is a drag in a bull market.