Waiting to invest in HEROMOTOCO? Consider it, because it ranked better than it's peers

HEROMOTOCO ranked better than it's peers today. On a longer term basis, investors in HERO MOTOCORP LIMITED made +0.05% per day. Tuesday's performance of +0.36% was a outperformance compared to it's daily average.

[Themes containing HEROMOTOCO]

HEROMOTOCO showed a bullish trend over the last 3 months. During this period HEROMOTOCO delivered +4.57% and saw a maximum drawdown of -15.12%. There was a long signal during this period which returned +7.22%.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

HEROMOTOCO has been outperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 1 Sep, 2017 to 4 Oct, 2018. Over the last 2 years and 12 months, HEROMOTOCO underperformed the NIFTY-50 index on 49% days. Which indicates that on days HEROMOTOCO underperforms the NIFTY-50 index, it's performance is marginally worse than on the days it outperforms the NIFTY-50 index.

During the last three months HEROMOTOCO was mostly profitable and delivered on average +0.1% per day. It's best return during this period (of +7.23%) was on Wednesday, 12 Dec, 2018. While it's worst loss in the same period (of -5.15%) was on Thursday, 4 Oct, 2018. The longest stort-term trends during this period were 3 profitable and losing days. The bullish trend (which returned +6.46%) started on 8 Oct, 2018 and went on till 10 Oct, 2018 while the bearish trend (which returned -5.8%) started on 26 Sep, 2018 and went on till 28 Sep, 2018.

The last 12 months saw HEROMOTOCO's investors making profits in 3 months and incurring losses in 9 months. HEROMOTOCO was less consistent in delivering monthly returs than NIFTY-50 index. HEROMOTOCO significantly outperformed NIFTY-50 index in Nov 2018, when it returned +10.6% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. HEROMOTOCO had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from May 2018 to Oct 2018) during which period it delivered -27.68%.

Money often costs too much.
-- Ralph Waldo Emerson

HEROMOTOCO 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 HEROMOTOCO's volatility from 8 Oct, 2018 to 10 Dec, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 21 Sep, 2018 to 5 Dec, 2018.

Advanced/professional short-term investors should note that HEROMOTOCO has significant negative skewness in it's return distribution. This indicates that HEROMOTOCO is very risky for short-term investment and can significantly underperform for long durations.

Investors trading in HEROMOTOCO derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in HEROMOTOCO you may find it interesting to know that DMART, HINDUNILVR and TECHM are large caps that have all shown remarkable performance and qualify to be on every investor's watchlist.