CARE RATINGS LIMITED

1017.35 +17.91 (+1.76%) Buy

CARERATING continues to mint money for it's investors

13 min read

CARE RATINGS LIMITED was among the best performers on Friday. It returned +1.76% to close at 1017.35. On a day when the overall market breadth was 71%, it closed higher than 41% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing CARERATING]

CARERATING is currently in a up trend. The previous long signal in CARERATING has not been profitable for investors in general. If you are invested in CARERATING at current levels please make sure that your allocation is limited and that your portfolio is well diversified.

Trend

CARERATING has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, CARERATING underperformed the NIFTY-50 index on 54% days.

During the last three months CARERATING was mostly loss making and delivered on average -0.14% per day. It's best return during this period (of +3.91%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -7.09%) was on Monday, 22 Oct, 2018. There was initially a bullish trend during this period which started on 23 Oct, 2018 and went on till 25 Oct, 2018. The bullish trend returned +7.3% to investors. This was followed by a bearish trend that started on 9 Nov, 2018 and ended on 16 Nov, 2018. This bearish trend lost -6.21% of investor capital.

On monthly basis, CARERATING delivered profits in more months over the last year, than losses. CARERATING delivered profits in more months than NIFTY-50 index. CARERATING was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -12.02% compared to -6.42% returned by NIFTY-50 index in Sep 2018. CARERATING 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 -25.21%. It is interesting to note that both CARERATING and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.
-- T.T. Munger

CARERATING is becoming more volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant fall in CARERATING's volatility from 22 Oct, 2018 to 9 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 CARERATING has significant negative skewness in it's return distribution. This indicates that CARERATING is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in CARERATING), two mid cap instruments that deserve special mention are BATAINDIA and LTI. They have significantly outperformed the overall market.

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