COLGATE PALMOLIVE LTD.

1310.8 -15.61 (-1.19%) Buy

Waiting to invest in COLPAL? Look for alternatives because it performed worse than the broader market

13 min read

COLPAL performed worse than the broader market today. On a longer term basis, investors in COLGATE PALMOLIVE LTD. made +0.06% per day. Friday's performance of -1.19% was a underperformance compared to it's daily average.

[Themes containing COLPAL]

COLPAL showed a strong bullish trend over the last 3 months. During this period COLPAL surged by +20.05% and saw a maximum drawdown of -6.2%. There was a long signal during this period which returned +16.46%.

Trend

COLPAL has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 11 Sep, 2018 to 31 Dec, 2018. Over the last 3 years and 1 month, COLPAL outperformed the NIFTY-50 index on 51% days.

COLPAL returned losses on 51% days in the last three months. During this time, it delivered on average +0.3% per day. It delivered it's best daily return of +4.45%, during this period, on Monday, 26 Nov, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 13 Nov, 2018 and went on till 21 Nov, 2018. This bullish trend returned +6.08% to investors.

The last 12 months saw COLPAL's investors making profits in 7 months and incurring losses in 5 months. During the last year, COLPAL delivered profits in more months than NIFTY-50 index. COLPAL significantly outperformed NIFTY-50 index in May 2018, when it returned +13.36% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. COLPAL had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Mar 2018 to May 2018) during which period it delivered +21.77%.

"Investors must keep in mind that there's a difference between a good company and a good stock. After all, you can buy a good car but pay too much for it .

COLPAL 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 surge in COLPAL's volatility from 9 Nov, 2018 to 11 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 COLPAL has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

Investors trading in COLPAL derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in COLPAL you may find it interesting to know that HATSUN is highly volatile and investors investing in it must take extreme caution. Consider either reducing your exposure to HATSUN or sufficiently diversifying your portfolio.

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