174.1 -1.73 (-1.0%) Sell

BANCOINDIA continues its fall as more investors loose confidence

13 min read

BANCO PRODUCTS (I) LTD performed worse than the broader market today. It delivered -1.0% to close at 174.1. It's recent 5 day performance has been -2.63%, -0.14%, -0.52%, 0.0% and +1.48%.

[Themes containing BANCOINDIA]

BANCOINDIA showed a bearish trend over the last 3 months. During this period BANCOINDIA delivered -6.45% and saw a maximum drawdown of -12.27%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in BANCOINDIA till volatility reduces and a clear trend emerges.


BANCOINDIA has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 18 Feb, 2016 to 8 Jan, 2018. Over the last 3 years and 1 month, BANCOINDIA outperformed the NIFTY-50 index on 47% days. Which indicates that on days BANCOINDIA 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 BANCOINDIA was mostly loss making and delivered on average -0.09% per day. It's best return during this period (of +3.43%) was on Thursday, 20 Dec, 2018. While it's worst loss in the same period (of -4.14%) was on Monday, 26 Nov, 2018. The longest stort-term trend during this period was 5 losing days, which started on 21 Nov, 2018 and ended on 28 Nov, 2018. This bearish trend lost -6.82% of investor capital.

The last 12 months saw BANCOINDIA's investors making profits in 4 months and incurring losses in 8 months. BANCOINDIA was less consistent in delivering monthly returs than NIFTY-50 index. BANCOINDIA was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -12.93% compared to -6.42% returned by NIFTY-50 index in Sep 2018. BANCOINDIA had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Sep 2018 to Nov 2018) during which period it delivered -22.76%. It is interesting to note that both BANCOINDIA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

An investment in knowledge pays the best interest.
-- Benjamin Franklin

BANCOINDIA 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 BANCOINDIA's volatility from 26 Oct, 2018 to 18 Jan, 2019. 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 BANCOINDIA has significant negative skewness in it's return distribution. This indicates that BANCOINDIA is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in BANCOINDIA), if you are an investor in IGARASHI, you need to be extra careful (consider limiting your exposure or diversifying) as it is extremely unpredictable and therefore risky.

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