6.0 -0.15 (-2.44%) Sell

Don't invest in ZICOM now, it is a really dangerous investment now

13 min read

ZICOM ranked among the worst performers today. On a longer term basis, investors in ZICOM ELECT SEC SYS LTD made -0.21% per day. Tuesday's performance of -2.44% was a significant underperformance compared to it's daily average.

[Themes containing ZICOM]

ZICOM showed a strong down trend over the last 3 months. During this period ZICOM returned -20.53% and saw a maximum drawdown of -31.82%. There were 2 short signals during this period that returned a cumulative of +2.84% to investors.


ZICOM has been underperforming the NIFTY-50 index in recent time, after having outperformed till 5 Jan, 2016. Over the last 3 years and 1 month, ZICOM underperformed the NIFTY-50 index on 56% days.

During the last three months ZICOM was mostly loss making and delivered on average -0.33% per day. It's best return during this period (of +13.25%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -7.43%) was on Monday, 12 Nov, 2018. There was initially a bearish trend during this period which started on 4 Dec, 2018 and went on till 10 Dec, 2018. The trend delivered -11.53% losses to investors. This was followed by a bullish trend that started on 11 Dec, 2018 and ended on 13 Dec, 2018. This bullish trend delivered +2.18% to investors.

On monthly basis, ZICOM delivered losses in more months over the last year, than profits. ZICOM delivered profits less regularly than NIFTY-50 index. ZICOM was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -36.96% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ZICOM and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both ZICOM and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Investing is a business, investment is a project and investor is a promoter.
-- Vijay Kedia

ZICOM 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 ZICOM's volatility from 23 Oct, 2018 to 9 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 ZICOM has significant negative skewness in it's return distribution. This indicates that ZICOM is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in ZICOM you may find it interesting to know that IGARASHI is highly volatile and investors investing in it must take extreme caution. Consider either reducing your exposure to IGARASHI or sufficiently diversifying your portfolio.

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