INDOCO REMEDIES LTD. was among the worst performers on Friday. It returned -8.11% to close at 198.85. It is currently trading -33% below it's 52 week high of 297.9.
INDOCO is currently in a down trend. The previous short signal in INDOCO has not been profitable for investors in general. If you are short on INDOCO at current levels please make sure that your allocation is limited and that your portfolio is well diversified.
INDOCO has been underperforming the NIFTY-50 index in recent time, after having outperformed till 25 Jan, 2016. Over the last 3 years and 1 month, INDOCO underperformed the NIFTY-50 index on 54% days.
During the last three months INDOCO was mostly profitable and delivered on average +0.15% per day. It's best return during this period (of +20.0%) was on Thursday, 22 Nov, 2018. While it's worst loss in the same period (of -8.11%) was on Friday, 18 Jan, 2019. 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 -15.2% losses to investors. This was followed by a bullish trend that started on 26 Dec, 2018 and ended on 2 Jan, 2019. This bullish trend delivered +3.74% to investors.
On monthly basis, INDOCO delivered losses in more months over the last year, than profits. INDOCO delivered profits less regularly than NIFTY-50 index. INDOCO was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -16.95% compared to -6.42% returned by NIFTY-50 index in Sep 2018. INDOCO had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -40.27%.
"The underlying principles of sound investment should not alter from decade to decade, but the application of these principles must be adapted to significant changes in the financial mechanisms and climate.
INDOCO is becoming more 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 INDOCO's volatility from 19 Oct, 2018 to 11 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 INDOCO has significant negative skewness in it's return distribution. This indicates that INDOCO is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than INDOCO. Therefore, NIFTY-50 must receive a lower allocation than INDOCO in your portfolio. NIFTY-50 index usually has shorter drawdown period than INDOCO.
On a general note (since you are interested in INDOCO), three instruments that have performed similar to INDOCO are RSYSTEMS, NAHARCAP and ZUARIGLOB. They must all be evaluated as alternative investment options and for diversification.
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