TATA INVESTMENT CORP LTD trailed the broader market on Friday. It fell by -0.11% to close at 835.4. It is currently trading +26% above it's 52 week low of 659.9 and is down only -7% from it's 52 week high.
Buy-and-Hold investors in TATAINVEST experienced a maximum drawdown of -8.3% over the last three months. It increased by +20.95% during this strong 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. The net profit from Long signals was +2.76%.
TATAINVEST has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 5 Aug, 2016 to 19 Sep, 2017. Over the last 3 years and 1 month, TATAINVEST outperformed the NIFTY-50 index on 42% days. Which indicates that on days TATAINVEST 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 TATAINVEST was mostly profitable and delivered on average +0.33% per day. It's best return during this period (of +14.36%) was on Wednesday, 14 Nov, 2018. While it's worst loss in the same period (of -4.04%) was on Thursday, 10 Jan, 2019. The longest stort-term trend during this period was 8 profitable days, which started on 11 Dec, 2018 and went on till 20 Dec, 2018. This bullish trend returned +4.34% to investors.
During the last year TATAINVEST had 5 profitable months and 7 loss making months. Profitable number of months of TATAINVEST and NIFTY-50 index were the same. TATAINVEST significantly outperformed NIFTY-50 index in Nov 2018, when it returned +25.89% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. TATAINVEST had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -16.5%. It is interesting to note that both TATAINVEST and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
"The way to become rich is to put all your eggs in one basket and then watch that basket.
TATAINVEST 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 fall in TATAINVEST's volatility from 23 Oct, 2018 to 4 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 TATAINVEST has significant negative skewness in it's return distribution. This indicates that TATAINVEST is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than TATAINVEST. Therefore, NIFTY-50 must receive a lower allocation than TATAINVEST in your portfolio. NIFTY-50 index usually has shorter drawdown period than TATAINVEST.
Based on your interest in TATAINVEST you may find it interesting to know that ~HOMEAPPLIANCES and IGARASHI are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).
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