ZICOM ELECT SEC SYS LTD

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.

Trend

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.

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