3M INDIA LIMITED

20984.5 +95.04 (+0.45%) Buy

3MINDIA continues it's uptrend, although on a weaker note

15 min read

3M INDIA LIMITED performed better than the broader market today. It returned +0.45% to close at 20984.5. During the last week it returned +2.0% and saw a maximum drawdown of -0.71% before bouncing back.

[Themes containing 3MINDIA]

Buy-and-Hold investors in 3MINDIA experienced a maximum drawdown of -14.73% over the last three months. It lost -3.92% during this down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +5.1%.

Trend

3MINDIA has been underperforming the NIFTY-50 index in recent time, after having outperformed till 3 Sep, 2018. Over the last 3 years and 1 month, 3MINDIA outperformed the NIFTY-50 index on 45% days. Which indicates that on days 3MINDIA outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

During the last three months 3MINDIA delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +7.11%) was on Wednesday, 12 Dec, 2018. While it's worst loss in the same period (of -7.16%) was on Tuesday, 23 Oct, 2018. There was initially a bullish trend during this period which started on 28 Nov, 2018 and went on till 4 Dec, 2018. The bullish trend returned +8.17% to investors. This was followed by a bearish trend that started on 20 Dec, 2018 and ended on 27 Dec, 2018. This bearish trend lost -11.88% of investor capital.

3MINDIA had 7 profitable and 5 loss making months over the last year. 3MINDIA was profitable in more months than NIFTY-50 index. 3MINDIA significantly outperformed NIFTY-50 index in Jul 2018, when it returned +18.23% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. 3MINDIA had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Jun 2018 to Aug 2018) during which period it delivered +29.49%. It is interesting to note that both 3MINDIA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

All intelligent investing is value investing - acquiring more than you are paying for. You must value the business in order to value the stock .
-- Charles Thomas Munger

3MINDIA is becoming less volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant fall in 3MINDIA's volatility from 23 Oct, 2018 to 29 Nov, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 31 Oct, 2018 to 5 Dec, 2018.

Advanced/professional short-term investors should note that 3MINDIA has significant negative skewness in it's return distribution. This indicates that 3MINDIA is very risky for short-term investment and can significantly underperform for long durations.

NIFTY-50 index has more chance of extreme outcomes than 3MINDIA. Therefore, NIFTY-50 must receive a lower allocation than 3MINDIA in your portfolio. NIFTY-50 index usually has shorter drawdown period than 3MINDIA.

On a general note (since you are interested in 3MINDIA), three instruments that have performed similar to 3MINDIA are MERCK, MAHSCOOTER and AMBIKCO. They must all be evaluated as alternative investment options and 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
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