97.75 -0.94 (-0.96%) Sell

TATACOFFEE investors treading cautiously as performance is muted

13 min read

TATACOFFEE performed worse than the broader market today. On a longer term basis, investors in TATA COFFEE LIMITED made +0.03% per day. Friday's performance of -0.96% was a significant underperformance compared to it's daily average.

[Themes containing TATACOFFEE]

Buy-and-Hold investors in TATACOFFEE experienced a maximum drawdown of -8.47% over the last three months. It returned -1.31% during this down trending period. There were no long signals during this period, where the short signal generated profits of +1.31% for investors.


TATACOFFEE has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, TATACOFFEE underperformed the NIFTY-50 index on 54% days.

During the last three months TATACOFFEE was mostly loss making and delivered on average -0.02% per day. It's best return during this period (of +2.65%) was on Monday, 17 Dec, 2018. While it's worst loss in the same period (of -2.34%) was on Thursday, 22 Nov, 2018. There was initially a bearish trend during this period which started on 22 Oct, 2018 and went on till 26 Oct, 2018. The trend delivered -4.79% losses to investors. This was followed by a bullish trend that started on 8 Jan, 2019 and ended on 14 Jan, 2019. This bullish trend delivered +4.07% to investors.

On monthly basis, TATACOFFEE delivered profits and losses in equal number of months. TATACOFFEE delivered profits in more months than NIFTY-50 index. TATACOFFEE was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -17.02% compared to -6.42% returned by NIFTY-50 index in Sep 2018. TATACOFFEE and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both TATACOFFEE and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

If all the economists were laid end to end, they'd never reach a conclusion.
-- George Bernard Shaw

TATACOFFEE 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 TATACOFFEE's volatility from 22 Oct, 2018 to 30 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 TATACOFFEE has significant negative skewness in it's return distribution. This indicates that TATACOFFEE is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in TATACOFFEE), three small cap instruments that deserve special mention are VINATIORGA, IGARASHI and RESPONIND. They have all outperformed the market and must be closely watched for investment opportunities.

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