229.95 -2.91 (-1.27%) Sell

THOMASCOOK continues its fall as more investors loose confidence

15 min read

THOMASCOOK trailed the broader market today. On a longer term basis, investors in THOMAS COOK (INDIA) LTD made +0.08% per day. Friday's performance of -1.27% was a significant underperformance compared to it's daily average.

[Themes containing THOMASCOOK]

Buy-and-Hold investors in THOMASCOOK experienced a maximum drawdown of -6.34% over the last three months. It returned +13.72% during this strong up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.


THOMASCOOK has been underperforming the NIFTY-50 index in recent time, after having outperformed till 2 Apr, 2018. Over the last 3 years and 1 month, THOMASCOOK underperformed the NIFTY-50 index on 53% days.

During the last three months THOMASCOOK delivered losses on 53% days. However, it still managed to end this period in a profit. It's best return during this period (of +4.75%) was on Monday, 22 Oct, 2018. While it's worst loss in the same period (of -3.51%) was on Wednesday, 5 Dec, 2018. There was initially a bullish trend during this period which started on 12 Nov, 2018 and went on till 19 Nov, 2018. The bullish trend returned +6.08% to investors. This was followed by a bearish trend that started on 5 Dec, 2018 and ended on 10 Dec, 2018. This bearish trend lost -6.47% of investor capital.

THOMASCOOK had 5 profitable and 7 loss making months over the last year. During the last year, number of profitable months of THOMASCOOK and NIFTY-50 index were the same. THOMASCOOK significantly outperformed NIFTY-50 index in Mar 2018, when it returned +16.43% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. THOMASCOOK had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from May 2018 to Oct 2018) during which period it delivered -35.04%.

"The road to economic well-being is to reward productive economic activity and to provide a moderate and predictable growth of money to finance real economic growth without reigniting the fires of inflation.

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

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

On a general note (since you are interested in THOMASCOOK), if you are evaluating THOMASCOOK as an investment candidate, then you should read about BATAINDIA which has delivered similar performance and can help diversify your portfolio.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter