Want to invest in DISHTV? Avoid as it delivered massive losses

DISH TV INDIA LTD. delivered massive losses on Friday. It returned -3.58% to close at 33.65 which is it's 52 week low, down -57% from it's 52 week high.

[Themes containing DISHTV]

DISHTV showed a strong down trend over the last 3 months. During this period DISHTV returned -27.56% and saw a maximum drawdown of -27.56%. There were 2 short signals during this period that returned a cumulative of +21.07% to investors.

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DISHTV has been underperforming the NIFTY-50 index in recent time, after having outperformed till 6 Jan, 2016. DISHTV is currently at it's worst performance to the NIFTY-50 index and therefore does not make a good investment candidate. Over the last 3 years and 1 month, DISHTV underperformed the NIFTY-50 index on 53% days.

During the last three months DISHTV was mostly loss making and delivered on average -0.43% per day. It's best return during this period (of +10.84%) was on Friday, 26 Oct, 2018. While it's worst loss in the same period (of -17.81%) was on Thursday, 25 Oct, 2018. There was initially a bearish trend during this period which started on 9 Nov, 2018 and went on till 16 Nov, 2018. The trend delivered -14.1% losses to investors. This was followed by a bullish trend that started on 10 Dec, 2018 and ended on 14 Dec, 2018. This bullish trend delivered +11.7% to investors.

On monthly basis, DISHTV delivered losses in more months over the last year, than profits. DISHTV delivered profits less regularly than NIFTY-50 index. DISHTV was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Oct 2018, returned -26.96% compared to -6.42% returned by NIFTY-50 index in Sep 2018. DISHTV had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Sep 2018 to Jan 2019) during which period it delivered -69.8%.

If I finance a bank and I know if the bank will get in trouble, I will be hit and I will lose money, I will put a price on that.
-- Jeroen Dijsselbloem

DISHTV 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 DISHTV's volatility from 19 Oct, 2018 to 3 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 DISHTV has significant positive skewness in it's return distribution. This indicates that investors can expect DISHTV to recover from drawdowns quickly. Which makes DISHTV a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in DISHTV derivatives at this moment can consider 'Long Straddle' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in DISHTV), if you are evaluating DISHTV as an investment candidate, then you should read about MAXINDIA which has delivered similar performance and can help diversify your portfolio.