2705.71 -6.4 (-0.24%) Buy

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DYES THEME investors treading cautiously as performance is muted

13 min read

~DYES underperformed today. On a longer term basis, investors in Dyes made +0.17% per day. Friday's performance of -0.24% was a significant underperformance compared to it's daily average.

[Theme constituents]

Buy-and-Hold investors in ~DYES experienced a maximum drawdown of -9.14% over the last three months. It returned +3.21% 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.


~DYES has been outperforming the NIFTY-50 index in recent time. Over the last 2 years and 11 months, ~DYES outperformed the NIFTY-50 index on 49% days. Which indicates that on days ~DYES outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

During the last three months ~DYES delivered losses on 57% days. However, it still managed to end this period in a profit. It's best return during this period (of +2.06%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -2.02%) was on Monday, 10 Dec, 2018. There was initially a bullish trend during this period which started on 4 Jan, 2019 and went on till 10 Jan, 2019. The bullish trend returned +5.24% to investors. This was followed by a bearish trend that started on 11 Jan, 2019 and ended on 18 Jan, 2019. This bearish trend lost -2.56% of investor capital.

~DYES had 4 profitable and 8 loss making months over the last year. During the last year, ~DYES underperformed NIFTY-50 index on monthly return basis. ~DYES was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -11.36% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~DYES had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -22.47%. It is interesting to note that both ~DYES and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

The studios don't finance anymore, they get outside funds.
-- Robert Rodriguez

~DYES 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 ~DYES's volatility from 22 Oct, 2018 to 2 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 ~DYES has significant negative skewness in it's return distribution. This indicates that ~DYES is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in ~DYES), three instruments that deserve special mention are BRITANNIA, BAJFINANCE and ~MKTCAP201TO250. They have all outperformed the market and must be closely watched for investment opportunities.

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