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

~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.

Trend

Monthly Performance

Alpha (outperformance)

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Volatility

Return distribution

~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.