Automobile Components THEME

1433.87 +1.39 (+0.1%) Sell

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AUTOCOMP THEME investors update their stop-losses higher

15 min read

Automobile Components ranked better than it's peers on Friday. It delivered +0.1% to close at 1433.87. It is currently trading -26% below it's 52 week high of 1958.87.

[Theme constituents]

Buy-and-Hold investors in ~AUTOCOMP experienced a maximum drawdown of -20.4% over the last three months. It delivered -14.64% during this strong bearish trending period. There were no long signals during this period, where the short signal generated good profits of +14.64% for investors.


~AUTOCOMP has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 19 Jan, 2016 to 5 Jan, 2018. Over the last 2 years 11 months and 13 days, ~AUTOCOMP outperformed the NIFTY-50 index on 54% days.

During the last three months ~AUTOCOMP was mostly loss making and delivered on average -0.25% per day. It's best return during this period (of +5.56%) was on Monday, 5 Nov, 2018. While it's worst loss in the same period (of -4.89%) was on Monday, 10 Dec, 2018. The longest stort-term trends during this period were 5 profitable and losing days. The bullish trend (which returned +11.17%) started on 30 Oct, 2018 and went on till 5 Nov, 2018 while the bearish trend (which returned -6.11%) started on 3 Oct, 2018 and went on till 9 Oct, 2018.

The last 12 months saw ~AUTOCOMP's investors making profits in 3 months and incurring losses in 9 months. ~AUTOCOMP was less consistent in delivering monthly returs than NIFTY-50 index. ~AUTOCOMP was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -12.06% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~AUTOCOMP had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Jan 2018 to Mar 2018) during which period it delivered -12.52%. It is interesting to note that both ~AUTOCOMP and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Innovation distinguishes between a leader and a follower.
-- Steve Jobs

~AUTOCOMP 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 ~AUTOCOMP's volatility from 5 Nov, 2018 to 30 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 ~AUTOCOMP has significant positive skewness in it's return distribution. This indicates that investors can expect ~AUTOCOMP to recover from drawdowns quickly. Which makes ~AUTOCOMP a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in ~AUTOCOMP you may find it interesting to know that IGARASHI and RESPONIND are both small caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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