Market Cap 401-450 THEME

1599.59 +4.45 (+0.28%) Buy

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Profit booking on the minds of MKTCAP401TO450 THEME investors as it shows marginal outperformance

15 min read

~MKTCAP401TO450 is looking better than most other alternatives today. On a longer term basis, investors in Market Cap 401-450 made +0.07% per day. Tuesday's performance of +0.28% was a significant outperformance compared to it's daily average.

[Theme constituents]

Buy-and-Hold investors in ~MKTCAP401TO450 experienced a maximum drawdown of -15.29% over the last three months. It returned -8.92% during this down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +6.34%.


~MKTCAP401TO450 has been underperforming the NIFTY-50 index in recent time, after having outperformed till 15 Jan, 2018. Over the last 2 years 9 months and 8 days, ~MKTCAP401TO450 outperformed the NIFTY-50 index on 56% days.

During the last three months ~MKTCAP401TO450 delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +3.24%) was on Wednesday, 10 Oct, 2018. While it's worst loss in the same period (of -4.1%) was on Friday, 28 Sep, 2018. There was initially a bearish trend during this period which started on 21 Sep, 2018 and went on till 28 Sep, 2018. The trend delivered -11.38% losses to investors. This was followed by a bullish trend that started on 29 Oct, 2018 and ended on 9 Nov, 2018. This bullish trend delivered +8.81% to investors.

On monthly basis, ~MKTCAP401TO450 delivered losses in more months over the last year, than profits. ~MKTCAP401TO450 delivered profits less regularly than NIFTY-50 index. ~MKTCAP401TO450 was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -14.87% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~MKTCAP401TO450 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 -13.41%. It is interesting to note that both ~MKTCAP401TO450 and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"Beware of little expenses. A small leak will sink a great ship.

~MKTCAP401TO450 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 ~MKTCAP401TO450's volatility from 24 Sep, 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 ~MKTCAP401TO450 has significant positive skewness in it's return distribution. This indicates that investors can expect ~MKTCAP401TO450 to recover from drawdowns quickly. Which makes ~MKTCAP401TO450 a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

NIFTY-50 index has more chance of extreme outcomes than ~MKTCAP401TO450. Therefore, NIFTY-50 must receive a lower allocation than ~MKTCAP401TO450 in your portfolio. ~MKTCAP401TO450 usually has shorter drawdown period than the NIFTY-50 index.

On a general note (since you are interested in ~MKTCAP401TO450), IGARASHI is a small cap that deserves to be closely tracked for investment opportunities.

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