200.3 -0.35 (-0.17%) Sell

HCG investors re-evaluating their investment strategy

13 min read

HEALTHCARE GLOB. ENT. LTD showed weakness today. It fell by -0.17% to close at 200.3. During the last week it increased by +1.73% and saw a maximum drawdown of -0.17% before bouncing back.

[Themes containing HCG]

HCG is currently in a bearish trend. The current bearish signal has generated a profit of +11.9% for investors in the last three months.


HCG has been outperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 5 Feb, 2018 to 7 Jan, 2019. Over the last 2 years and 10 months, HCG underperformed the NIFTY-50 index on 52% days.

During the last three months HCG was mostly loss making and delivered on average -0.18% per day. It's best return during this period (of +4.89%) was on Monday, 26 Nov, 2018. While it's worst loss in the same period (of -7.31%) was on Wednesday, 5 Dec, 2018. The longest stort-term trend during this period was 7 losing days, which started on 28 Nov, 2018 and ended on 6 Dec, 2018. This bearish trend lost -17.24% of investor capital.

During the last year HCG had 3 profitable months and 9 loss making months. HCG returned profits in fewer months than NIFTY-50 index. HCG was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -16.07% compared to -6.42% returned by NIFTY-50 index in Sep 2018. HCG had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Feb 2018 to May 2018) during which period it delivered -16.86%. It is interesting to note that both HCG and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

You can only become truly accomplished at something you love. Don't make money your goal. Instead, pursue the things you love doing, and then do them so well that people can't take their eyes off you.
-- Maya Angelou

HCG 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 fall in HCG's volatility from 22 Oct, 2018 to 18 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 HCG has significant negative skewness in it's return distribution. This indicates that HCG is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in HCG you may find it interesting to know that CUB is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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