CG POWER AND IND SOL LTD

43.05 -0.54 (-1.26%) Sell

CGPOWER investors treading cautiously as performance is muted

13 min read

CG POWER AND IND SOL LTD underperformed on Friday. It lost -1.26% to close at 43.05. It is currently trading -55% below it's 52 week high of 96.95.

[Themes containing CGPOWER]

CGPOWER is currently in a down trend. Over the last three months Buy-and-Hold has been a better strategy (returning +14.19%) for CGPOWER's investors than shorting it.

Trend

CGPOWER has been underperforming the NIFTY-50 index in recent time, after having outperformed till 5 Jan, 2016. Over the last 3 years and 1 month, CGPOWER underperformed the NIFTY-50 index on 51% days.

During the last three months CGPOWER delivered losses on 53% days. However, it still managed to end this period in a profit. It's best return during this period (of +8.22%) was on Friday, 21 Dec, 2018. While it's worst loss in the same period (of -4.94%) was on Wednesday, 14 Nov, 2018. There was initially a bearish trend during this period which started on 22 Oct, 2018 and went on till 26 Oct, 2018. The trend delivered -7.49% losses to investors. This was followed by a bullish trend that started on 31 Oct, 2018 and ended on 2 Nov, 2018. This bullish trend delivered +5.49% to investors.

CGPOWER had 4 profitable and 8 loss making months over the last year. During the last year, CGPOWER underperformed NIFTY-50 index on monthly return basis. CGPOWER was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -26.65% compared to -6.42% returned by NIFTY-50 index in Sep 2018. CGPOWER had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -54.38%. It is interesting to note that both CGPOWER and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"The financial markets generally are unpredictable. So that one has to have different scenarios... The idea that you can actually predict what's going to happen contradicts my way of looking at the market.

CGPOWER 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 CGPOWER's volatility from 19 Nov, 2018 to 16 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 CGPOWER has significant positive skewness in it's return distribution. This indicates that investors can expect CGPOWER to recover from drawdowns quickly. Which makes CGPOWER a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in CGPOWER derivatives at this moment can consider 'Long Strangle' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in CGPOWER), NIITTECH is a small cap that deserves to be closely tracked for investment opportunities.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
If you liked what you read here ...

... 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
Share with friends   WhatsApp   Facebook   Twitter