Consumer Lending THEME

3059.47 +42.19 (+1.38%) Buy

Optimize theme

CONSUMERLENDING THEME investors herd to book profits while the going is good

13 min read

Consumer Lending ranked among the worst performers today. It increased by +1.38% to close at 3059.47. During the last week it increased by +0.68% and saw a maximum drawdown of -1.59% before bouncing back.

[Theme constituents]

~CONSUMERLENDING is currently in a bullish trend. Over the last three months 2 bullish signals in ~CONSUMERLENDING have generated a profit of +0.73% for investors.

Trend

~CONSUMERLENDING has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 1 Jan, 2016 to 9 Aug, 2018. Over the last 2 years and 12 months, ~CONSUMERLENDING outperformed the NIFTY-50 index on 55% days.

During the last three months ~CONSUMERLENDING was mostly profitable and delivered on average +0.04% per day. It's best return during this period (of +7.8%) was on Wednesday, 10 Oct, 2018. While it's worst loss in the same period (of -4.48%) was on Monday, 24 Sep, 2018. The longest stort-term trends during this period were 4 profitable and losing days. The bullish trend (which returned +5.57%) started on 31 Oct, 2018 and went on till 5 Nov, 2018 while the bearish trend (which returned -8.98%) started on 3 Oct, 2018 and went on till 8 Oct, 2018.

The last 12 months saw ~CONSUMERLENDING's investors making profits in 7 months and incurring losses in 5 months. During the last year, ~CONSUMERLENDING delivered profits in more months than NIFTY-50 index. ~CONSUMERLENDING was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -14.22% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~CONSUMERLENDING had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered +9.68%. It is interesting to note that both ~CONSUMERLENDING and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Traditionally, the sample is always better than the stock you deliver to the store.
-- Calvin Klein

~CONSUMERLENDING 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 ~CONSUMERLENDING's volatility from 11 Oct, 2018 to 26 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 ~CONSUMERLENDING has significant positive skewness in it's return distribution. This indicates that investors can expect ~CONSUMERLENDING to recover from drawdowns quickly. Which makes ~CONSUMERLENDING a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in ~CONSUMERLENDING you may find it interesting to know that ~CHEMICALS, HONAUT and BRITANNIA have all performed similar to ~CONSUMERLENDING and qualify as alternative investment candidates that must be evaluated for diversification.

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