402.85 -2.58 (-0.64%) Sell

CLNINDIA continues its fall as more investors loose confidence

13 min read

CLARIANT CHEMICALS (INDIA trailed the broader market on Friday. It lost -0.64% to close at 402.85. It is currently trading -36% below it's 52 week high of 637.2.

[Themes containing CLNINDIA]

CLNINDIA showed a up trend over the last 3 months. During this period CLNINDIA grew by +7.17% and saw a maximum drawdown of -6.58%. There were 2 long signals during this period that returned a cumulative of +2.6% to investors.


CLNINDIA has been underperforming the NIFTY-50 index in recent time, after having outperformed till 11 Jan, 2016. Over the last 3 years and 1 month, CLNINDIA underperformed the NIFTY-50 index on 53% days.

During the last three months CLNINDIA delivered losses on 54% days. However, it still managed to end this period in a profit. It's best return during this period (of +5.95%) was on Wednesday, 12 Dec, 2018. While it's worst loss in the same period (of -3.92%) was on Friday, 2 Nov, 2018. There was initially a bullish trend during this period which started on 19 Oct, 2018 and went on till 25 Oct, 2018. The bullish trend returned +2.8% to investors. This was followed by a bearish trend that started on 1 Jan, 2019 and ended on 10 Jan, 2019. This bearish trend lost -3.6% of investor capital.

CLNINDIA had 3 profitable and 9 loss making months over the last year. During the last year, CLNINDIA underperformed NIFTY-50 index on monthly return basis. CLNINDIA significantly outperformed NIFTY-50 index in Aug 2018, when it returned +28.73% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. CLNINDIA had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -47.14%. It is interesting to note that both CLNINDIA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"The thing I have discovered about working with personal finance is that the good news is that it is not rocket science. Personal finance is about 80 percent behavior. It is only about 20 percent head knowledge.

CLNINDIA 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 CLNINDIA's volatility from 13 Dec, 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 CLNINDIA has significant negative skewness in it's return distribution. This indicates that CLNINDIA is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in CLNINDIA), two instruments that deserve special mention are ~MKTCAP201TO250 and BRITANNIA. They have significantly outperformed the overall market.

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