6352.35 +35.14 (+0.55%) Sell

WABCOINDIA shows sign of weakness as investors do cost averaging

13 min read

WABCO INDIA LIMITED managed to marginally outperform the broader market today. It gained +0.55% to close at 6352.35. During the last week it lost -0.86% and saw a maximum drawdown of -2.01% before bouncing back.

[Themes containing WABCOINDIA]

WABCOINDIA is currently in a down trend. Over the last three months trading short signals has not been a profitable strategy for WABCOINDIA's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -3.11%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to WABCOINDIA.


WABCOINDIA has been underperforming the NIFTY-50 index in recent time, after having outperformed till 31 Mar, 2016. Over the last 3 years and 1 month, WABCOINDIA underperformed the NIFTY-50 index on 55% days.

WABCOINDIA returned losses on 61% days in the last three months. During this time, it delivered on average -0.03% per day. It delivered it's best daily return of +4.86%, during this period, on Tuesday, 11 Dec, 2018. There was initially a bullish trend during this period which started on 31 Oct, 2018 and went on till 9 Nov, 2018. The bullish trend returned +8.56% to investors. This was followed by a bearish trend that started on 31 Dec, 2018 and ended on 9 Jan, 2019. This bearish trend lost -9.1% of investor capital.

WABCOINDIA had 5 profitable and 7 loss making months over the last year. During the last year, number of profitable months of WABCOINDIA and NIFTY-50 index were the same. WABCOINDIA significantly outperformed NIFTY-50 index in Feb 2018, when it returned +9.02% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. WABCOINDIA had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from May 2018 to Jul 2018) during which period it delivered -18.71%.

Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did do.
-- Mark Twain

WABCOINDIA 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 WABCOINDIA's volatility from 23 Oct, 2018 to 17 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 WABCOINDIA has significant negative skewness in it's return distribution. This indicates that WABCOINDIA is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in WABCOINDIA you may find it interesting to know that LTTS, CUB and BATAINDIA are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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