Stop-loss on the minds of HATHWAY investors as it underperforms broader market
18 Jan, 201913 min read
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HATHWAY CABLE & DATACOM delivered lacklustre performance today. It fell by -1.28% to close at 30.85. It's recent 5 day performance has been +1.13%, -0.32%, +0.32%, -0.48% and -0.16%.
HATHWAY is currently in a bullish trend. The current bullish signal has generated a profit of +1.65% for HATHWAY's investors in the last three months.
HATHWAY has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 5 Jan, 2016 to 28 Aug, 2018. Over the last 3 years and 1 month, HATHWAY underperformed the NIFTY-50 index on 56% days.
During the last three months HATHWAY delivered losses on 58% days. However, it still managed to end this period in a profit. It's best return during this period (of +1.47%) was on Monday, 19 Nov, 2018. While it's worst loss in the same period (of -1.28%) was on Friday, 18 Jan, 2019. The longest stort-term trend during this period was 11 profitable days, which started on 2 Nov, 2018 and went on till 19 Nov, 2018. This bullish trend returned +3.62% to investors.
During the last year HATHWAY had 6 profitable months and 6 loss making months. HATHWAY returned profits in more months than NIFTY-50 index. HATHWAY was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jul 2018, returned -28.3% compared to -6.42% returned by NIFTY-50 index in Sep 2018. HATHWAY had a longer winning streak of profitable months than NIFTY-50 index. It went up in 6 straight months (from Aug 2018 to Jan 2019) during which period it delivered +55.86%. It is interesting to note that both HATHWAY and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
I always said that if I wasn't studying psychopaths in prison, I'd do it at the stock exchange.
-- Robert D. Hare
HATHWAY 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 HATHWAY's volatility from 19 Oct, 2018 to 10 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 HATHWAY has significant negative skewness in it's return distribution. This indicates that HATHWAY is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than HATHWAY. Therefore, NIFTY-50 must receive a lower allocation than HATHWAY in your portfolio. NIFTY-50 index usually has shorter drawdown period than HATHWAY.
Based on your interest in HATHWAY you may find it interesting to know that BAJFINANCE, ~CHEMICALS and ~MKTCAP201TO250 have all shown remarkable performance and qualify to be on every investor's watchlist.
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