COFFEE DAY ENTERPRISE LTD

294.35 +1.56 (+0.53%) Buy

Waiting to invest in COFFEEDAY? Consider it, because it managed to outperform the broader market

13 min read

COFFEEDAY managed to outperform the broader market today. On a longer term basis, investors in COFFEE DAY ENTERPRISE LTD made +0.03% per day. Friday's performance of +0.53% was a outperformance compared to it's daily average.

[Themes containing COFFEEDAY]

COFFEEDAY showed a strong bullish trend over the last 3 months. During this period COFFEEDAY surged by +11.18% and saw a maximum drawdown of -13.35%. There was a long signal during this period which returned +0.94%.

Trend

COFFEEDAY has been outperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 5 Jan, 2016 to 27 Aug, 2018. Over the last 3 years and 1 month, COFFEEDAY underperformed the NIFTY-50 index on 56% days.

COFFEEDAY was profitable on 50% days in the last three months. During this time, it delivered on average +0.18% per day. It delivered it's worst daily return of -5.65%, during this period, on Thursday, 15 Nov, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 1 Nov, 2018 and went on till 7 Nov, 2018. This bullish trend returned +11.63% to investors.

The last 12 months saw COFFEEDAY's investors making profits in 7 months and incurring losses in 5 months. During the last year, COFFEEDAY delivered profits in more months than NIFTY-50 index. COFFEEDAY significantly outperformed NIFTY-50 index in Apr 2018, when it returned +13.63% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. COFFEEDAY had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Jul 2018 to Sep 2018) during which period it delivered +6.0%. It is interesting to note that both COFFEEDAY and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

It is not the man who has too little, but the man who craves more, that is poor.
-- Seneca

COFFEEDAY is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in COFFEEDAY's volatility from 19 Oct, 2018 to 11 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 COFFEEDAY has significant negative skewness in it's return distribution. This indicates that COFFEEDAY is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in COFFEEDAY you may find it interesting to know that NIFTY50-DIV-POINT and TIDEWATER are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).

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