ASSAM COMPANY INDIA LTD

2.0 0.0 (0.0%) Sell

ASSAMCO shows sign of weakness as investors do cost averaging

13 min read

ASSAM COMPANY INDIA LTD showed marginal outperformance today. It delivered 0.0% to close at 2.0. It's recent 5 day performance has been +2.56%, +2.63%, 0.0%, -5.0% and 0.0%.

[Themes containing ASSAMCO]

ASSAMCO showed a strong bearish trend over the last 3 months. During this period ASSAMCO delivered -18.37% and saw a maximum drawdown of -32.65%. There were 2 short signals during this period that returned a cumulative of +33.45% to investors.

Trend

ASSAMCO has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 8 Mar, 2017 to 17 Jan, 2019. Over the last 3 years and 1 month, ASSAMCO underperformed the NIFTY-50 index on 58% days.

During the last three months ASSAMCO was mostly loss making and delivered on average -0.29% per day. It's best return during this period (of +5.0%) was on Tuesday, 27 Nov, 2018. While it's worst loss in the same period (of -5.0%) was on Wednesday, 16 Jan, 2019. The longest stort-term trend during this period was 14 profitable days, which started on 15 Nov, 2018 and went on till 5 Dec, 2018. This bullish trend returned +50.18% to investors.

The last 12 months saw ASSAMCO's investors making profits in 3 months and incurring losses in 9 months. ASSAMCO was less consistent in delivering monthly returs than NIFTY-50 index. ASSAMCO significantly outperformed NIFTY-50 index in Jul 2018, when it returned +38.18% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. ASSAMCO had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -55.26%. It is interesting to note that both ASSAMCO and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"Infinite growth of material consumption in a finite world is an impossibility.

ASSAMCO 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 surge in ASSAMCO's volatility from 14 Nov, 2018 to 27 Dec, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 29 Oct, 2018 to 5 Dec, 2018.

Advanced/professional short-term investors should note that ASSAMCO 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.

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

On a general note (since you are interested in ASSAMCO), HINDUNILVR is a large cap that deserves to be closely tracked for investment opportunities.

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