Plywood THEME

2447.46 -41.84 (-1.71%) Sell

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PLYWOOD THEME investors looking to cut their losses short

13 min read

Plywood delivered lacklustre performance on Tuesday. It delivered -1.71% to close at 2447.46. It is currently trading -56% below it's 52 week high of 5588.37.

[Theme constituents]

~PLYWOOD is currently in a bearish trend. The previous short signal in ~PLYWOOD has not been profitable for investors in general. If you are short on ~PLYWOOD at current levels please make sure that your allocation is limited and that your portfolio is well diversified.


~PLYWOOD has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 21 Dec, 2017 to 1 Oct, 2018. Over the last 3 years and 1 month, ~PLYWOOD underperformed the NIFTY-50 index on 53% days.

~PLYWOOD returned losses on 54% days in the last three months. During this time, it delivered on average +0.08% per day. It delivered it's best daily return of +4.73%, during this period, on Thursday, 22 Nov, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 26 Oct, 2018 and went on till 2 Nov, 2018. This bullish trend returned +8.05% to investors.

The last 12 months saw ~PLYWOOD's investors making profits in 3 months and incurring losses in 9 months. ~PLYWOOD was less consistent in delivering monthly returs than NIFTY-50 index. ~PLYWOOD was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -24.23% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~PLYWOOD had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from May 2018 to Sep 2018) during which period it delivered -57.01%. It is interesting to note that both ~PLYWOOD and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"The underlying principles of sound investment should not alter from decade to decade, but the application of these principles must be adapted to significant changes in the financial mechanisms and climate.

~PLYWOOD 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 fall in ~PLYWOOD's volatility from 23 Oct, 2018 to 17 Jan, 2019. 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 ~PLYWOOD has significant negative skewness in it's return distribution. This indicates that ~PLYWOOD is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in ~PLYWOOD), BAJFINANCE has performed really well and deserves to be closely tracked for investment opportunities.

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