68.2 -0.84 (-1.23%) Sell

RICOAUTO investors take a moment to reassess their portfolio allocation

13 min read

RICO AUTO INDUSTRIES LTD underperformed today. It delivered -1.23% to close at 68.2. During the last week it delivered -2.99% and saw a maximum drawdown of -2.99%.

[Themes containing RICOAUTO]

Buy-and-Hold investors in RICOAUTO experienced a maximum drawdown of -11.99% over the last three months. It delivered +1.49% during this bullish trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.


RICOAUTO has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 26 Feb, 2016 to 23 Oct, 2017. Over the last 3 years and 1 month, RICOAUTO outperformed the NIFTY-50 index on 46% days. Which indicates that on days RICOAUTO outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

During the last three months RICOAUTO delivered losses on 56% days. However, it still managed to end this period in a profit. It's best return during this period (of +10.98%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -5.24%) was on Thursday, 1 Nov, 2018. The longest stort-term trend during this period was 5 losing days, which started on 20 Dec, 2018 and ended on 27 Dec, 2018. This bearish trend lost -7.04% of investor capital.

The last 12 months saw RICOAUTO's investors making profits in 4 months and incurring losses in 8 months. RICOAUTO was less consistent in delivering monthly returs than NIFTY-50 index. RICOAUTO was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -18.04% compared to -6.42% returned by NIFTY-50 index in Sep 2018. RICOAUTO had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered -15.82%. It is interesting to note that both RICOAUTO and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Empty pockets never held anyone back. Only empty heads and empty hearts can do that.
-- Norman Vincent Peale

RICOAUTO 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 RICOAUTO's volatility from 31 Oct, 2018 to 9 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 RICOAUTO has significant negative skewness in it's return distribution. This indicates that RICOAUTO is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in RICOAUTO), three instruments that deserve special mention are ~CHEMICALS, BRITANNIA and ~MUTHOOTGRP. They have all outperformed the market and must be closely watched for investment opportunities.

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