Diversified Fin. Services THEME

3910.44 -34.31 (-0.88%) Buy

Optimize theme

DIVFINSERVS THEME investors not showing any loss of confidence as it pauses to catch its breath

15 min read

Diversified Fin. Services ranked worse than it's peers on Friday. It fell by -0.88% to close at 3910.44. It is currently trading +323% above it's 52 week low of 923.67 and is down only -1% from it's 52 week high.

[Theme constituents]

Buy-and-Hold investors in ~DIVFINSERVS experienced a maximum drawdown of -15.06% over the last three months. It surged by +123.54% during this strong bullish trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +51.1%.

Trend

~DIVFINSERVS has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 23 Mar, 2016 to 15 Jan, 2019. Over the last 3 years and 1 month, ~DIVFINSERVS outperformed the NIFTY-50 index on 62% days.

~DIVFINSERVS was profitable on 58% days in the last three months. During this time, it delivered on average +1.34% per day. It delivered it's best daily return of +11.54%, during this period, on Monday, 31 Dec, 2018. The longest stort-term trend during this period was 13 profitable days, which started on 29 Oct, 2018 and went on till 15 Nov, 2018. This bullish trend returned +32.56% to investors.

During the last year ~DIVFINSERVS had 5 profitable months and 7 loss making months. ~DIVFINSERVS returned profits in fewer months than NIFTY-50 index. ~DIVFINSERVS significantly outperformed NIFTY-50 index in Dec 2018, when it returned +32.86% compared to +4.72% returned by NIFTY-50 index during it's best month in the last one year - Nov 2018. ~DIVFINSERVS and NIFTY-50 index, both had periods of 3 consecutive profitable months. It is interesting to note that both ~DIVFINSERVS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"Derivatives are financial weapons of mass destruction.

~DIVFINSERVS is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant surge in ~DIVFINSERVS's volatility from 4 Dec, 2018 to 3 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 ~DIVFINSERVS 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.

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

Based on your interest in ~DIVFINSERVS you may find it interesting to know that IGARASHI, ASTRAZEN and VINATIORGA are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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