WOCKPHARMA is a falling knife, continues to bleed every investor trying to catch it

WOCKHARDT LIMITED was among the worst performers today. It fell by -2.38% to close at 489.35. It's recent 5 day performance has been -1.79%, +0.21%, -0.05%, -1.06% and -0.39%.

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WOCKPHARMA is currently in a bearish trend. Over the last three months trading short signals has not been a profitable strategy for WOCKPHARMA's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned +1.8%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to WOCKPHARMA.

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Monthly Performance

Alpha (outperformance)

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Return distribution

WOCKPHARMA has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 12 Jan, 2016 to 28 Aug, 2018. Over the last 3 years and 1 month, WOCKPHARMA underperformed the NIFTY-50 index on 56% days.

During the last three months WOCKPHARMA delivered losses on 51% days. However, it still managed to end this period in a profit. It's best return during this period (of +11.32%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -7.07%) was on Tuesday, 13 Nov, 2018. The longest stort-term trend during this period was 6 losing days, which started on 3 Dec, 2018 and ended on 10 Dec, 2018. This bearish trend lost -12.02% of investor capital.

During the last year WOCKPHARMA had 4 profitable months and 8 loss making months. WOCKPHARMA returned profits in fewer months than NIFTY-50 index. WOCKPHARMA was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -18.39% compared to -6.42% returned by NIFTY-50 index in Sep 2018. WOCKPHARMA 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 -31.01%.

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WOCKPHARMA 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 WOCKPHARMA's volatility from 29 Oct, 2018 to 16 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 WOCKPHARMA has significant positive skewness in it's return distribution. This indicates that investors can expect WOCKPHARMA to recover from drawdowns quickly. Which makes WOCKPHARMA a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in WOCKPHARMA derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in WOCKPHARMA you may find it interesting to know that CUB, MERCK and NIITTECH have all shown remarkable performance this year and deserve to be on every investor's watchlist.