Compressors THEME

2050.11 -6.37 (-0.31%) Buy

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

15 min read

~COMPRESSORS performed better than the broader market today. On a longer term basis, investors in Compressors made +0.08% per day. Friday's performance of -0.31% was a significant underperformance compared to it's daily average.

[Theme constituents]

Buy-and-Hold investors in ~COMPRESSORS experienced a maximum drawdown of -8.26% over the last three months. It returned +8.18% during this up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.


~COMPRESSORS has been underperforming the NIFTY-50 index in recent time, after having outperformed till 3 May, 2017. Over the last 3 years and 1 month, ~COMPRESSORS underperformed the NIFTY-50 index on 50% days. Which indicates that on days ~COMPRESSORS underperforms the NIFTY-50 index, it's performance is marginally worse than on the days it outperforms the NIFTY-50 index.

During the last three months ~COMPRESSORS was mostly profitable and delivered on average +0.13% per day. It's best return during this period (of +3.6%) was on Wednesday, 12 Dec, 2018. While it's worst loss in the same period (of -1.92%) was on Monday, 12 Nov, 2018. There was initially a bullish trend during this period which started on 19 Oct, 2018 and went on till 24 Oct, 2018. The bullish trend returned +2.57% to investors. This was followed by a bearish trend that started on 15 Nov, 2018 and ended on 20 Nov, 2018. This bearish trend lost -3.63% of investor capital.

On monthly basis, ~COMPRESSORS delivered losses in more months over the last year, than profits. ~COMPRESSORS delivered profits less regularly than NIFTY-50 index. ~COMPRESSORS was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -15.41% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~COMPRESSORS had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Sep 2018 to Nov 2018) during which period it delivered -14.71%. It is interesting to note that both ~COMPRESSORS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.
-- Robert G. Allen

~COMPRESSORS 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 ~COMPRESSORS's volatility from 19 Oct, 2018 to 29 Nov, 2018. 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 ~COMPRESSORS has significant negative skewness in it's return distribution. This indicates that ~COMPRESSORS is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in ~COMPRESSORS), if you are evaluating ~COMPRESSORS as an investment candidate, then you should read about AUROPHARMA which has delivered similar performance and can help diversify your portfolio.

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