Cables THEME

2876.41 -40.24 (-1.4%) Sell

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Don't consider investing in CABLES THEME now, it is risky at the moment

13 min read

~CABLES trailed the broader market today. On a longer term basis, investors in Cables made +0.18% per day. Tuesday's performance of -1.4% was a significant underperformance compared to it's daily average.

[Theme constituents]

~CABLES showed a strong up trend over the last 3 months. During this period ~CABLES returned +10.82% and saw a maximum drawdown of -11.74%. There was a long signal during this period which returned +8.29%.

Trend

~CABLES has been underperforming the NIFTY-50 index in recent time, after having outperformed till 14 Feb, 2018. Over the last 2 years and 11 months, ~CABLES outperformed the NIFTY-50 index on 52% days.

During the last three months ~CABLES was mostly profitable and delivered on average +0.17% per day. It's best return during this period (of +4.4%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -2.53%) was on Monday, 10 Dec, 2018. There was initially a bullish trend during this period which started on 23 Oct, 2018 and went on till 7 Nov, 2018. The bullish trend returned +23.07% to investors. This was followed by a bearish trend that started on 3 Jan, 2019 and ended on 10 Jan, 2019. This bearish trend lost -3.69% of investor capital.

On monthly basis, ~CABLES delivered losses in more months over the last year, than profits. ~CABLES delivered profits less regularly than NIFTY-50 index. ~CABLES was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -16.12% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~CABLES and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both ~CABLES and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

I'd like to live as a poor man with lots of money.
-- Pablo Picasso

~CABLES 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 ~CABLES's volatility from 1 Nov, 2018 to 18 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 ~CABLES has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

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

Based on your interest in ~CABLES you may find it interesting to know that NIFTY-GS-15YRPLUS, BRITANNIA and BAJFINANCE have all shown remarkable performance and qualify to be on every investor's watchlist.

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