Don't lose faith in DBSTOCKBRO now, it delivered good returns

DB (INT) STOCK BROKERS showed marginal outperformance on Friday. It fell by 0.0% to close at 8.4. On a day when the overall market breadth was 71%, it closed higher than 7% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing DBSTOCKBRO]

DBSTOCKBRO showed a bearish trend over the last 3 months. During this period DBSTOCKBRO fell by -6.67% and saw a maximum drawdown of -27.22%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in DBSTOCKBRO till volatility reduces and a clear trend emerges.

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Monthly Performance

Alpha (outperformance)

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Return distribution

DBSTOCKBRO has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 15 Jan, 2016 to 27 Aug, 2018. Over the last 3 years and 1 month, DBSTOCKBRO underperformed the NIFTY-50 index on 56% days.

During the last three months DBSTOCKBRO was mostly loss making and delivered on average -0.14% per day. It's best return during this period (of +4.9%) was on Monday, 10 Dec, 2018. While it's worst loss in the same period (of -5.0%) was on Wednesday, 31 Oct, 2018. The longest stort-term trend during this period was 13 profitable days, which started on 6 Dec, 2018 and went on till 14 Jan, 2019. This bullish trend returned +30.19% to investors.

During the last year DBSTOCKBRO had 2 profitable months and 10 loss making months. DBSTOCKBRO returned profits in fewer months than NIFTY-50 index. DBSTOCKBRO significantly outperformed NIFTY-50 index in Dec 2018, when it returned +28.47% compared to +4.92% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. DBSTOCKBRO had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered -16.58%.

The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.
-- T.T. Munger

DBSTOCKBRO 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 DBSTOCKBRO's volatility from 19 Oct, 2018 to 13 Nov, 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 DBSTOCKBRO has significant positive skewness in it's return distribution. This indicates that investors can expect DBSTOCKBRO to recover from drawdowns quickly. Which makes DBSTOCKBRO a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in DBSTOCKBRO you may find it interesting to know that IGARASHI and ~HOMEAPPLIANCES are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).