Engineering THEME

715.208 -6.84 (-0.96%) Sell

Optimize theme

Search for alternative investments is on for ENGINEERING THEME investors as it underperforms broader market

15 min read

Engineering delivered lacklustre performance on Friday. It delivered -0.96% to close at 715.208. It is currently trading -33% below it's 52 week high of 1079.81.

[Theme constituents]

Buy-and-Hold investors in ~ENGINEERING experienced a maximum drawdown of -7.72% over the last three months. It increased by +8.42% during this bullish trending period. There were no long signals during this period. However, the short signal incurred a significant loss, losing -8.42% of investors' capital.


~ENGINEERING has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 22 May, 2017 to 1 Oct, 2018. Over the last 1 year and 8 months, ~ENGINEERING underperformed the NIFTY-50 index on 57% days.

During the last three months ~ENGINEERING was mostly profitable and delivered on average +0.14% per day. It's best return during this period (of +2.31%) was on Wednesday, 12 Dec, 2018. While it's worst loss in the same period (of -2.63%) was on Thursday, 25 Oct, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 11 Dec, 2018 and went on till 20 Dec, 2018. This bullish trend returned +9.22% to investors.

The last 12 months saw ~ENGINEERING's investors making profits in 6 months and incurring losses in 6 months. During the last year, ~ENGINEERING and NIFTY-50 index had the same number of profitable months. ~ENGINEERING was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -18.09% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~ENGINEERING had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Nov 2018 to Jan 2019) during which period it delivered +6.96%. It is interesting to note that both ~ENGINEERING and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Money is not the only answer, but it makes a difference.
-- Barack Obama

~ENGINEERING 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 fall in ~ENGINEERING's volatility from 25 Oct, 2018 to 11 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 ~ENGINEERING has significant negative skewness in it's return distribution. This indicates that ~ENGINEERING is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in ~ENGINEERING you may find it interesting to know that COCHINSHIP, ~MKTCAP351TO400 and ~LOGISTICS have all performed similar to ~ENGINEERING 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