Large Automobile THEME

1285.75 +8.06 (+0.63%) Sell

Optimize theme

LARGEAUTO THEME shows sign of weakness as investors do cost averaging

13 min read

Large Automobile managed to marginally outperform the broader market today. It gained +0.63% to close at 1285.75. During the last week it gained +5.6%.

[Theme constituents]

Buy-and-Hold investors in ~LARGEAUTO experienced a maximum drawdown of -17.37% over the last three months. It returned -12.61% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +12.61% for investors.

Trend

~LARGEAUTO has been underperforming the NIFTY-50 index in recent time, after having outperformed till 9 Jan, 2018. Over the last 2 years 11 months and 13 days, ~LARGEAUTO underperformed the NIFTY-50 index on 46% days. Which indicates that on days ~LARGEAUTO underperforms the NIFTY-50 index, it's performance is marginally worse than on the days it outperforms the NIFTY-50 index.

~LARGEAUTO was profitable on 50% days in the last three months. During this time, it delivered on average -0.21% per day. It delivered it's best daily return of +4.7%, during this period, on Friday, 2 Nov, 2018. There was initially a bearish trend during this period which started on 26 Sep, 2018 and went on till 28 Sep, 2018. The trend delivered -5.45% losses to investors. This was followed by a bullish trend that started on 26 Oct, 2018 and ended on 31 Oct, 2018. This bullish trend delivered +3.03% to investors.

On monthly basis, ~LARGEAUTO delivered losses in more months over the last year, than profits. ~LARGEAUTO delivered profits less regularly than NIFTY-50 index. ~LARGEAUTO was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -12.63% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~LARGEAUTO had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Jan 2018 to Mar 2018) during which period it delivered -8.38%. It is interesting to note that both ~LARGEAUTO and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy.
-- Warren Buffett

~LARGEAUTO is becoming more 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 ~LARGEAUTO's volatility from 12 Oct, 2018 to 4 Dec, 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 ~LARGEAUTO has significant positive skewness in it's return distribution. This indicates that investors can expect ~LARGEAUTO to recover from drawdowns quickly. Which makes ~LARGEAUTO a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in ~LARGEAUTO), DMART has performed really well and deserves to be closely tracked for investment opportunities.

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