CESC LTD performed better than the broader market on Friday. It returned +0.42% to close at 689.0. It is currently trading -40% below it's 52 week high of 1150.0.
CESC showed a strong down trend over the last 3 months. During this period CESC lost -24.09% and saw a maximum drawdown of -27.98%. There were 4 short signals during this period that returned a cumulative of +8.81% to investors.
CESC has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, CESC outperformed the NIFTY-50 index on 48% days. Which indicates that on days CESC 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 CESC was mostly loss making and delivered on average -0.4% per day. It's best return during this period (of +3.59%) was on Friday, 11 Jan, 2019. While it's worst loss in the same period (of -17.4%) was on Tuesday, 30 Oct, 2018. There was initially a bearish trend during this period which started on 5 Dec, 2018 and went on till 11 Dec, 2018. The trend delivered -3.89% losses to investors. This was followed by a bullish trend that started on 10 Jan, 2019 and ended on 16 Jan, 2019. This bullish trend delivered +7.46% to investors.
CESC had 5 profitable and 7 loss making months over the last year. During the last year, number of profitable months of CESC and NIFTY-50 index were the same. CESC was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Oct 2018, returned -19.81% compared to -6.42% returned by NIFTY-50 index in Sep 2018. CESC and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both CESC and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
If you took our top fifteen decisions out, we'd have a pretty average record. It wasn't hyperactivity, but a hell of a lot of patience. You stuck to your principles and when opportunities came along, you pounced on them with vigor.
-- Charlie Munger
CESC is becoming less 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 CESC's volatility from 30 Oct, 2018 to 10 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 CESC has significant positive skewness in it's return distribution. This indicates that investors can expect CESC to recover from drawdowns quickly. Which makes CESC a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Investors trading in CESC derivatives at this moment can consider 'Long Straddle' options strategy to receive better risk-adjusted returns.
NIFTY-50 index has more chance of extreme outcomes than CESC. Therefore, NIFTY-50 must receive a lower allocation than CESC in your portfolio. CESC usually has shorter drawdown period than the NIFTY-50 index.
On a general note (since you are interested in CESC), VINATIORGA is a small cap that deserves to be closely tracked for investment opportunities.
... 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