Machine Lubricants THEME

1142.54 -2.06 (-0.18%) Sell

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Don't lose faith in MACHINELUB THEME now, it delivered good returns

13 min read

~MACHINELUB showed marginal outperformance today. On a longer term basis, investors in Machine Lubricants made +0.03% per day. Friday's performance of -0.18% was a underperformance compared to it's daily average.

[Theme constituents]

~MACHINELUB showed a bearish trend over the last 3 months. During this period ~MACHINELUB fell by -3.36% and saw a maximum drawdown of -10.37%. There was a short signal during this period which returned +3.36%.

Trend

~MACHINELUB has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 12 Dec, 2016 to 1 Oct, 2018. Over the last 2 years 11 months and 13 days, ~MACHINELUB underperformed the NIFTY-50 index on 53% days.

During the last three months ~MACHINELUB was mostly loss making and delivered on average -0.05% per day. It's best return during this period (of +3.03%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -2.4%) was on Friday, 5 Oct, 2018. The longest stort-term trend during this period was 9 losing days, which started on 18 Sep, 2018 and ended on 1 Oct, 2018. This bearish trend lost -7.66% of investor capital.

During the last year ~MACHINELUB had 5 profitable months and 7 loss making months. Profitable number of months of ~MACHINELUB and NIFTY-50 index were the same. ~MACHINELUB was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -11.1% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~MACHINELUB and NIFTY-50 index, both had periods of 2 consecutive losing months. It is interesting to note that both ~MACHINELUB and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

As long as you're going to be thinking anyway, think big.
-- Donald Trump

~MACHINELUB 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 ~MACHINELUB's volatility from 26 Oct, 2018 to 12 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 ~MACHINELUB has significant positive skewness in it's return distribution. This indicates that investors can expect ~MACHINELUB to recover from drawdowns quickly. Which makes ~MACHINELUB a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in ~MACHINELUB you may find it interesting to know that NIFTY-COMMODITIES and ~HOSPITALCHAINS have both performed similar to ~MACHINELUB and can be considered by investors as alternative investment options.

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