Grinding Wheel THEME

1832.79 -3.37 (-0.18%) Sell

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GRINDINGWHEEL THEME continues its fall as more investors loose confidence

14 min read

Grinding Wheel delivered lacklustre performance on Friday. It delivered -0.18% to close at 1832.79. On a day when the overall market breadth was 71%, it closed higher than 56% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Theme constituents]

Buy-and-Hold investors in ~GRINDINGWHEEL experienced a maximum drawdown of -8.65% over the last three months. It surged by +5.13% during this 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.


~GRINDINGWHEEL has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 6 Mar, 2017 to 9 Jan, 2018. Over the last 3 years and 1 month, ~GRINDINGWHEEL outperformed the NIFTY-50 index on 48% days. Which indicates that on days ~GRINDINGWHEEL outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

~GRINDINGWHEEL returned losses on 53% days in the last three months. During this time, it delivered on average +0.09% per day. It delivered it's best daily return of +4.18%, during this period, on Monday, 29 Oct, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 29 Oct, 2018 and went on till 6 Nov, 2018. This bullish trend returned +13.05% to investors.

The last 12 months saw ~GRINDINGWHEEL's investors making profits in 5 months and incurring losses in 7 months. During the last year, ~GRINDINGWHEEL and NIFTY-50 index had the same number of profitable months. ~GRINDINGWHEEL significantly outperformed NIFTY-50 index in Apr 2018, when it returned +11.53% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. ~GRINDINGWHEEL and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both ~GRINDINGWHEEL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Try not to become a man of success. Rather become a man of value.
-- Albert Einstein

~GRINDINGWHEEL 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 ~GRINDINGWHEEL's volatility from 29 Oct, 2018 to 18 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 ~GRINDINGWHEEL 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.

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

Based on your interest in ~GRINDINGWHEEL you may find it interesting to know that ~AUTOCOMP, COLPAL and ASIANPAINT have all performed similar to ~GRINDINGWHEEL and qualify as alternative investment candidates that must be evaluated for diversification.

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