SCHNEIDER is a falling knife, continues to bleed every investor trying to catch it
22 Jan, 201913 min read
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SCHNEIDER ELECTRIC INFRA delivered massive losses today. It fell by -1.68% to close at 93.65. It's recent 5 day performance has been -1.09%, -0.82%, -0.56%, +0.36% and -0.15%.
SCHNEIDER showed a strong bearish trend over the last 3 months. During this period SCHNEIDER fell by -11.36% and saw a maximum drawdown of -20.94%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in SCHNEIDER till volatility reduces and a clear trend emerges.
SCHNEIDER has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 11 Jan, 2016 to 23 Jul, 2018. Over the last 3 years and 1 month, SCHNEIDER underperformed the NIFTY-50 index on 58% days.
SCHNEIDER returned losses on 64% days in the last three months. During this time, it delivered on average -0.17% per day. It delivered it's best daily return of +6.51%, during this period, on Monday, 29 Oct, 2018. The longest stort-term trend during this period was 5 losing days, which started on 19 Nov, 2018 and ended on 26 Nov, 2018. This bearish trend lost -7.83% of investor capital.
During the last year SCHNEIDER had 4 profitable months and 8 loss making months. SCHNEIDER returned profits in fewer months than NIFTY-50 index. SCHNEIDER significantly outperformed NIFTY-50 index in Jul 2018, when it returned +14.84% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. SCHNEIDER had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Oct 2018 to Jan 2019) during which period it delivered -20.25%. It is interesting to note that both SCHNEIDER and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
I made my money the old-fashioned way. I was very nice to a wealthy relative right before he died.
-- Malcolm Forbes
SCHNEIDER 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 SCHNEIDER's volatility from 15 Nov, 2018 to 18 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 SCHNEIDER has significant negative skewness in it's return distribution. This indicates that SCHNEIDER is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than SCHNEIDER. Therefore, NIFTY-50 must receive a lower allocation than SCHNEIDER in your portfolio. NIFTY-50 index usually has shorter drawdown period than SCHNEIDER.
On a general note (since you are interested in SCHNEIDER), IGARASHI has performed really well this year and deserves to be closely tracked for investment opportunities.
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