34.95 -0.49 (-1.41%) Sell

CENTRALBK investors looking to exit as part of sectoral rotation

13 min read

CENTRAL BANK OF INDIA significantly underperformed today. It delivered -1.41% to close at 34.95. During the last week it delivered -2.92% and saw a maximum drawdown of -2.92%.

[Themes containing CENTRALBK]

CENTRALBK is currently in a bearish trend. Over the last three months 3 bearish signals have generated a profit of +0.14% for investors.


CENTRALBK has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 9 May, 2017 to 30 Nov, 2018. Over the last 3 years and 1 month, CENTRALBK underperformed the NIFTY-50 index on 55% days.

CENTRALBK returned losses on 58% days in the last three months. During this time, it delivered on average +0.21% per day. It delivered it's best daily return of +6.3%, during this period, on Thursday, 27 Dec, 2018. The longest stort-term trend during this period was 9 profitable days, which started on 11 Dec, 2018 and went on till 21 Dec, 2018. This bullish trend returned +24.24% to investors.

The last 12 months saw CENTRALBK's investors making profits in 4 months and incurring losses in 8 months. CENTRALBK was less consistent in delivering monthly returs than NIFTY-50 index. CENTRALBK was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -40.06% compared to -6.42% returned by NIFTY-50 index in Sep 2018. CENTRALBK had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Aug 2018 to Nov 2018) during which period it delivered -72.54%. It is interesting to note that both CENTRALBK and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"I grew up in Finance.

CENTRALBK 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 CENTRALBK's volatility from 22 Oct, 2018 to 7 Dec, 2018. 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 CENTRALBK has positive skewness in it's return distribution. This indicates that investors can expect CENTRALBK to make attempts to recover from drawdowns quickly. Which makes CENTRALBK a good candidate for momentum based trading on short-term bullish trends or counter-trends.

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

Based on your interest in CENTRALBK you may find it interesting to know that IGARASHI and ~HOMEAPPLIANCES are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).

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