359.9 -3.47 (-0.96%) Buy

CARBORUNIV investors not showing any loss of confidence as it pauses to catch its breath

13 min read

CARBORUNDUM UNIVERSAL LTD trailed the broader market on Friday. It fell by -0.96% to close at 359.9. It is currently trading -11% below it's 52 week high of 408.4.

[Themes containing CARBORUNIV]

Buy-and-Hold investors in CARBORUNIV experienced a maximum drawdown of -8.97% over the last three months. It fell by -2.36% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were marginally more profitable than the long signals.


CARBORUNIV has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 4 Apr, 2016 to 4 Jan, 2018. Over the last 3 years and 1 month, CARBORUNIV outperformed the NIFTY-50 index on 48% days. Which indicates that on days CARBORUNIV outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

CARBORUNIV returned losses on 54% days in the last three months. During this time, it delivered on average -0.03% per day. It delivered it's best daily return of +6.29%, during this period, on Wednesday, 12 Dec, 2018. The longest stort-term trends during this period were 5 profitable and losing days. The bullish trend (which returned +5.15%) started on 1 Jan, 2019 and went on till 7 Jan, 2019 while the bearish trend (which returned -4.8%) started on 19 Dec, 2018 and went on till 26 Dec, 2018.

During the last year CARBORUNIV had 5 profitable months and 7 loss making months. Profitable number of months of CARBORUNIV and NIFTY-50 index were the same. CARBORUNIV significantly outperformed NIFTY-50 index in Jul 2018, when it returned +17.12% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. CARBORUNIV had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Jul 2018 to Sep 2018) during which period it delivered +20.89%. It is interesting to note that both CARBORUNIV and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"Wide diversification is only required when investors do not understand what they are doing.

CARBORUNIV 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 CARBORUNIV's volatility from 19 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 CARBORUNIV has significant negative skewness in it's return distribution. This indicates that CARBORUNIV is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in CARBORUNIV you may find it interesting to know that CUB and LTTS have both shown remarkable performance this year and deserve to be on every investors' watchlist.

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