Airlines THEME

576.557 +9.53 (+1.65%) Buy

Optimize theme

AIRLINES THEME continues it's uptrend, although on a weaker note

13 min read

~AIRLINES performed better than the broader market today. On a longer term basis, investors in Airlines made -0.05% per day. Friday's performance of +1.65% was a significant outperformance compared to it's daily average.

[Theme constituents]

~AIRLINES showed a strong up trend over the last 3 months. During this period ~AIRLINES returned +10.44% and saw a maximum drawdown of -26.21%. There was a long signal during this period which returned +12.52%.

Trend

~AIRLINES has been underperforming the NIFTY-50 index in recent time, after having outperformed till 12 Jan, 2016. Over the last 2 years 11 months and 13 days, ~AIRLINES underperformed the NIFTY-50 index on 54% days.

During the last three months ~AIRLINES was mostly profitable and delivered on average +0.23% per day. It's best return during this period (of +12.0%) was on Thursday, 15 Nov, 2018. While it's worst loss in the same period (of -6.78%) was on Friday, 5 Oct, 2018. There was initially a bearish trend during this period which started on 18 Sep, 2018 and went on till 3 Oct, 2018. The trend delivered -25.95% losses to investors. This was followed by a bullish trend that started on 1 Nov, 2018 and ended on 9 Nov, 2018. This bullish trend delivered +13.31% to investors.

~AIRLINES had 4 profitable and 8 loss making months over the last year. During the last year, ~AIRLINES underperformed NIFTY-50 index on monthly return basis. ~AIRLINES significantly outperformed NIFTY-50 index in Nov 2018, when it returned +28.17% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. ~AIRLINES had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from May 2018 to Sep 2018) during which period it delivered -76.89%. It is interesting to note that both ~AIRLINES and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Here's my gift-giving rule: Respect your current financial situation.
-- Suze Orman

~AIRLINES 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 surge in ~AIRLINES's volatility from 17 Sep, 2018 to 15 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 ~AIRLINES has positive skewness in it's return distribution. This indicates that investors can expect ~AIRLINES to make attempts to recover from drawdowns quickly. Which makes ~AIRLINES a good candidate for momentum based trading on short-term bullish trends or counter-trends.

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

On a general note (since you are interested in ~AIRLINES), HEG has performed really well this year and deserves to be closely tracked for investment opportunities.

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