18.95 -0.53 (-2.82%) Sell

KARMAENG investors looking to exit as part of sectoral rotation

13 min read

KARMAENG ranked among the worst performers today. On a longer term basis, investors in KARMA ENERGY LIMITED made +0.15% per day. Tuesday's performance of -2.82% was a underperformance compared to it's daily average.

[Themes containing KARMAENG]

Buy-and-Hold investors in KARMAENG experienced a maximum drawdown of -19.21% over the last three months. It delivered -7.11% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +0.82%.


KARMAENG has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 8 Feb, 2017 to 20 Dec, 2018. Over the last 3 years and 1 month, KARMAENG underperformed the NIFTY-50 index on 53% days.

During the last three months KARMAENG was mostly loss making and delivered on average -0.06% per day. It's best return during this period (of +9.19%) was on Tuesday, 11 Dec, 2018. While it's worst loss in the same period (of -6.83%) was on Wednesday, 19 Dec, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 21 Dec, 2018 and went on till 31 Dec, 2018. This bullish trend returned +10.13% to investors.

The last 12 months saw KARMAENG's investors making profits in 3 months and incurring losses in 9 months. KARMAENG was less consistent in delivering monthly returs than NIFTY-50 index. KARMAENG was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Oct 2018, returned -17.83% compared to -6.42% returned by NIFTY-50 index in Sep 2018. KARMAENG had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from Feb 2018 to Jul 2018) during which period it delivered -52.59%.

"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.

KARMAENG 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 surge in KARMAENG's volatility from 23 Oct, 2018 to 16 Nov, 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 KARMAENG has significant negative skewness in it's return distribution. This indicates that KARMAENG is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in KARMAENG), ~MUTHOOTGRP has performed really well and deserves to be closely tracked for investment opportunities.

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