CONTAINER CORP OF IND LTD

683.85 -10.39 (-1.52%) Buy

CONCOR investors herd to book profits while the going is good

13 min read

CONTAINER CORP OF IND LTD was among the worst performers on Friday. It lost -1.52% to close at 683.85. On a day when the overall market breadth was 71%, it closed higher than 45% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing CONCOR]

CONCOR is currently in a up trend. The current bullish signal has generated a profit of +1.83% for CONCOR's investors in the last three months.

Trend

CONCOR has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, CONCOR underperformed the NIFTY-50 index on 50% days. Which indicates that on days CONCOR underperforms the NIFTY-50 index, it's performance is marginally worse than on the days it outperforms the NIFTY-50 index.

CONCOR returned losses on 53% days in the last three months. During this time, it delivered on average +0.25% per day. It delivered it's best daily return of +7.91%, during this period, on Monday, 29 Oct, 2018. There was initially a bullish trend during this period which started on 26 Oct, 2018 and went on till 1 Nov, 2018. The bullish trend returned +18.94% to investors. This was followed by a bearish trend that started on 21 Nov, 2018 and ended on 28 Nov, 2018. This bearish trend lost -1.69% of investor capital.

CONCOR had 5 profitable and 7 loss making months over the last year. During the last year, number of profitable months of CONCOR and NIFTY-50 index were the same. CONCOR delivered +6.5% during it's best month (Nov 2018), which was lower than +6.56% delivered by NIFTY-50 index during it's best month - Jul 2018. CONCOR 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 -8.65%. It is interesting to note that both CONCOR and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"I turn up in Los Angeles every now and then, so I can get some big money films in order to finance my smaller money films.

CONCOR 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 CONCOR's volatility from 29 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 CONCOR 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 CONCOR derivatives at this moment can consider 'Long Straddle' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in CONCOR), two mid cap instruments that deserve special mention are LTI and LTTS. They have significantly outperformed the overall market.

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