10.45 -0.48 (-4.57%) Sell

MERCATOR investors dump it for better alternatives

16 min read

MERCATOR LIMITED ranked among the worst performers today. It lost -4.57% to close at 10.45. During the last week it lost -6.7% and saw a maximum drawdown of -6.7%.

[Themes containing MERCATOR]

MERCATOR is currently in a down trend. The previous short signal in MERCATOR has not been profitable for investors in general. If you are short on MERCATOR at current levels please make sure that your allocation is limited and that your portfolio is well diversified.


MERCATOR has been underperforming the NIFTY-50 index in recent time, after having outperformed till 25 Aug, 2016. MERCATOR is currently at it's worst performance to the NIFTY-50 index and therefore does not make a good investment candidate. Over the last 3 years and 1 month, MERCATOR underperformed the NIFTY-50 index on 54% days.

During the last three months MERCATOR delivered losses on 62% days. However, it still managed to end this period in a profit. It's best return during this period (of +9.76%) was on Friday, 26 Oct, 2018. While it's worst loss in the same period (of -5.0%) was on Monday, 19 Nov, 2018. There was initially a bullish trend during this period which started on 26 Oct, 2018 and went on till 12 Nov, 2018. The bullish trend returned +57.29% to investors. This was followed by a bearish trend that started on 13 Nov, 2018 and ended on 19 Nov, 2018. This bearish trend lost -15.7% of investor capital.

MERCATOR had 2 profitable and 10 loss making months over the last year. During the last year, MERCATOR underperformed NIFTY-50 index on monthly return basis. MERCATOR was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -24.0% compared to -6.42% returned by NIFTY-50 index in Sep 2018. MERCATOR 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 -61.7%.

Wealth is like sea-water; the more we drink, the thirstier we become; and the same is true of fame.
-- Arthur Schopenhauer

MERCATOR is becoming less 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 MERCATOR's volatility from 23 Oct, 2018 to 14 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 MERCATOR has significant negative skewness in it's return distribution. This indicates that MERCATOR is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in MERCATOR you may find it interesting to know that SHANKARA has delivered similar performance as MERCATOR and can be considered as an alternative investment candidate (to MERCATOR).

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