ARCOTECH LIMITED

7.15 0.0 (0.0%) Sell

ARCOTECH shows sign of weakness as investors do cost averaging

13 min read

ARCOTECH LIMITED ranked better than it's peers on Friday. It delivered 0.0% to close at 7.15. On a day when the overall market breadth was 71%, it closed higher than 11% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing ARCOTECH]

Buy-and-Hold investors in ARCOTECH experienced a maximum drawdown of -32.12% over the last three months. It delivered +7.52% during this bullish trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.

Trend

ARCOTECH has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 13 Feb, 2017 to 19 Dec, 2018. Over the last 3 years and 1 month, ARCOTECH underperformed the NIFTY-50 index on 56% days.

During the last three months ARCOTECH delivered losses on 54% days. However, it still managed to end this period in a profit. It's best return during this period (of +9.57%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -4.96%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 29 Oct, 2018 and went on till 6 Nov, 2018. This bullish trend returned +46.89% to investors.

The last 12 months saw ARCOTECH's investors making profits in 2 months and incurring losses in 10 months. ARCOTECH was less consistent in delivering monthly returs than NIFTY-50 index. ARCOTECH was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -36.22% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ARCOTECH had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from Feb 2018 to Jul 2018) during which period it delivered -118.62%.

"Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it.

ARCOTECH is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in ARCOTECH's volatility from 19 Oct, 2018 to 26 Oct, 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 ARCOTECH has significant negative skewness in it's return distribution. This indicates that ARCOTECH is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in ARCOTECH you may find it interesting to know that SRIPIPES, TIDEWATER and IEX are all extremely risky investment candidates that must be evaluated carefully. Investors with low risk profile are better off avoiding them till their performance becomes more consistent.

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