Leather THEME

1148.62 +0.41 (+0.04%) Sell

Optimize theme

LEATHER THEME shows sign of weakness as investors do cost averaging

13 min read

~LEATHER showed marginal outperformance today. On a longer term basis, investors in Leather made +0.03% per day. Friday's performance of +0.04% was a outperformance compared to it's daily average.

[Theme constituents]

~LEATHER showed a bearish trend over the last 3 months. During this period ~LEATHER fell by -7.94% and saw a maximum drawdown of -18.82%. There were 2 short signals during this period that returned a cumulative of +7.73% to investors.


~LEATHER has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 1 Nov, 2017 to 1 Oct, 2018. Over the last 2 years 11 months and 13 days, ~LEATHER underperformed the NIFTY-50 index on 53% days.

During the last three months ~LEATHER was mostly loss making and delivered on average -0.12% per day. It's best return during this period (of +5.77%) was on Wednesday, 10 Oct, 2018. While it's worst loss in the same period (of -4.15%) was on Friday, 28 Sep, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 24 Oct, 2018 and went on till 2 Nov, 2018. This bullish trend returned +13.43% to investors.

During the last year ~LEATHER had 7 profitable months and 5 loss making months. ~LEATHER returned profits in more months than NIFTY-50 index. ~LEATHER was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -13.76% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~LEATHER had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered +6.26%. It is interesting to note that both ~LEATHER and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

A highly developed stock exchange cannot be a club for the cult of ethics.
-- Max Weber

~LEATHER is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant surge in ~LEATHER's volatility from 19 Sep, 2018 to 17 Oct, 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 ~LEATHER has significant negative skewness in it's return distribution. This indicates that ~LEATHER is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in ~LEATHER you may find it interesting to know that BAJFINANCE is a large cap that has shown remarkable performance and deserves to be on every investors' 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