BANKBEES investors not showing any loss of confidence as it pauses to catch its breath
23 Jan, 201913 min read
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RELIANCE ETF BANK BEES performed worse than the broader market on Wednesday. It delivered -0.52% to close at 2778.87. It is currently trading +15% above it's 52 week low of 2405.12 and is down only -3% from it's 52 week high.
BANKBEES is currently in a bullish trend. The current bullish signal has generated a profit of +5.62% for BANKBEES's investors in the last three months.
BANKBEES has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 25 Feb, 2016 to 9 Jan, 2019. Over the last 3 years and 1 month, BANKBEES outperformed the NIFTY-50 index on 52% days.
BANKBEES was profitable on 55% days in the last three months. During this time, it delivered on average +0.14% per day. It delivered it's best daily return of +2.06%, during this period, on Monday, 29 Oct, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 11 Dec, 2018 and went on till 19 Dec, 2018. This bullish trend returned +4.09% to investors.
The last 12 months saw BANKBEES's investors making profits in 7 months and incurring losses in 5 months. During the last year, BANKBEES delivered profits in more months than NIFTY-50 index. BANKBEES was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -10.68% compared to -6.42% returned by NIFTY-50 index in Sep 2018. BANKBEES had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Nov 2018 to Jan 2019) during which period it delivered +8.29%. It is interesting to note that both BANKBEES and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Minimizing downside risk while maximizing the upside is a powerful concept.
-- Mohnish Pabrai
BANKBEES is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in BANKBEES's volatility from 5 Nov, 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 BANKBEES 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 BANKBEES. Therefore, NIFTY-50 must receive a lower allocation than BANKBEES in your portfolio. NIFTY-50 index usually has shorter drawdown period than BANKBEES.
Based on your interest in BANKBEES you may find it interesting to know that BATAINDIA, CUB and LTTS are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.
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