Petrochemical THEME

3524.52 -9.71 (-0.28%) Sell

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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.


~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.

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