Petrochemical THEME

3524.52 -9.71 (-0.28%) Sell

Optimize theme

Prayers for PETROCHEM THEME investors as it ranked among the worst performers

14 min read

Petrochemical delivered massive losses today. It delivered -0.28% to close at 3524.52. During the last week it delivered -4.48% and saw a maximum drawdown of -4.48%.

[Theme constituents]

Buy-and-Hold investors in ~PETROCHEM experienced a maximum drawdown of -12.34% over the last three months. It delivered -2.45% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.

Trend

~PETROCHEM has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 26 Feb, 2016 to 14 Feb, 2018. Over the last 3 years and 1 month, ~PETROCHEM outperformed the NIFTY-50 index on 54% days.

~PETROCHEM returned losses on 58% days in the last three months. During this time, it delivered on average -0.03% per day. It delivered it's best daily return of +3.67%, during this period, on Wednesday, 12 Dec, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 11 Dec, 2018 and went on till 20 Dec, 2018. This bullish trend returned +11.87% to investors.

The last 12 months saw ~PETROCHEM's investors making profits in 4 months and incurring losses in 8 months. ~PETROCHEM was less consistent in delivering monthly returs than NIFTY-50 index. ~PETROCHEM was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -12.75% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~PETROCHEM had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Mar 2018 to Jun 2018) during which period it delivered -23.14%.

Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.
-- Charles Dickens

~PETROCHEM 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 surge in ~PETROCHEM's volatility from 25 Oct, 2018 to 12 Dec, 2018. 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 ~PETROCHEM has significant positive skewness in it's return distribution. This indicates that investors can expect ~PETROCHEM to recover from drawdowns quickly. Which makes ~PETROCHEM a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in ~PETROCHEM you may find it interesting to know that ~ADDICTIONS, MGL and IGL have all performed similar to ~PETROCHEM and qualify as alternative investment candidates that must be evaluated for diversification.

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