PRINTING THEME is a falling knife, continues to bleed every investor trying to catch it

~PRINTING has destroyed investor wealth today. On a longer term basis, investors in Printing made +0.02% per day. Friday's performance of -0.97% was a significant underperformance compared to it's daily average.

[Theme constituents]

Buy-and-Hold investors in ~PRINTING experienced a maximum drawdown of -5.1% over the last three months. It lost -2.44% 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.

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Monthly Performance

Alpha (outperformance)

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~PRINTING has been underperforming the NIFTY-50 index in recent time, after having outperformed till 8 Jan, 2018. Over the last 3 years and 1 month, ~PRINTING underperformed the NIFTY-50 index on 51% days.

During the last three months ~PRINTING was mostly loss making and delivered on average -0.03% per day. It's best return during this period (of +4.12%) was on Wednesday, 9 Jan, 2019. While it's worst loss in the same period (of -1.85%) was on Monday, 24 Dec, 2018. There was initially a bearish trend during this period which started on 22 Oct, 2018 and went on till 26 Oct, 2018. The trend delivered -5.15% losses to investors. This was followed by a bullish trend that started on 29 Oct, 2018 and ended on 2 Nov, 2018. This bullish trend delivered +3.76% to investors.

~PRINTING had 3 profitable and 9 loss making months over the last year. During the last year, ~PRINTING underperformed NIFTY-50 index on monthly return basis. ~PRINTING was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -11.03% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~PRINTING had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from May 2018 to Jul 2018) during which period it delivered -20.28%. It is interesting to note that both ~PRINTING and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"As in roulette, same is true of the stock trader, who will find that the expense of trading weights the dice heavily against him.

~PRINTING 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 ~PRINTING's volatility from 29 Oct, 2018 to 4 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 ~PRINTING has significant positive skewness in it's return distribution. This indicates that investors can expect ~PRINTING to recover from drawdowns quickly. Which makes ~PRINTING 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 ~PRINTING. Therefore, NIFTY-50 must receive a lower allocation than ~PRINTING in your portfolio. ~PRINTING usually has shorter drawdown period than the NIFTY-50 index.

On a general note (since you are interested in ~PRINTING), if you are an investor in IEX, you need to be extra careful (consider limiting your exposure or diversifying) as it is extremely unpredictable and therefore risky.