Addictions THEME

1891.97 -3.94 (-0.21%) Sell

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Joy for ADDICTIONS THEME investors as it performed better than the broader market

14 min read

Addictions showed marginal outperformance on Friday. It delivered -0.21% to close at 1891.97. It is currently trading +22% above it's 52 week low of 1540.45 and is down only -6% from it's 52 week high.

[Theme constituents]

Buy-and-Hold investors in ~ADDICTIONS experienced a maximum drawdown of -19.63% over the last three months. It delivered -1.29% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were marginally more profitable than the long signals. The net profit from Short signals was +8.24%.

Trend

~ADDICTIONS has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 6 Jun, 2016 to 23 Jan, 2018. Over the last 2 years 11 months and 13 days, ~ADDICTIONS outperformed the NIFTY-50 index on 53% days.

During the last three months ~ADDICTIONS was mostly loss making and delivered on average -0.01% per day. It's best return during this period (of +3.53%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -3.92%) was on Friday, 5 Oct, 2018. The longest stort-term trend during this period was 8 losing days, which started on 27 Sep, 2018 and ended on 9 Oct, 2018. This bearish trend lost -12.46% of investor capital.

The last 12 months saw ~ADDICTIONS's investors making profits in 6 months and incurring losses in 6 months. During the last year, ~ADDICTIONS delivered profits in more months than NIFTY-50 index. ~ADDICTIONS was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -15.66% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~ADDICTIONS and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both ~ADDICTIONS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

The stock market is filled with individuals who know the price of everything, but the value of nothing.
-- Phillip Fisher

~ADDICTIONS is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in ~ADDICTIONS's volatility from 24 Sep, 2018 to 16 Nov, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 21 Sep, 2018 to 5 Dec, 2018.

Advanced/professional short-term investors should note that ~ADDICTIONS has significant positive skewness in it's return distribution. This indicates that investors can expect ~ADDICTIONS to recover from drawdowns quickly. Which makes ~ADDICTIONS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in ~ADDICTIONS you may find it interesting to know that NIFTY50-DIV-POINT, ~HOMEAPPLIANCES and HATSUN are all extremely risky investment candidates that must be evaluated carefully. Investors with low risk profile are better off avoiding them till their performance becomes more consistent.

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