Transmission THEME

672.033 -1.57 (-0.23%) Buy

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TRANSMISSION THEME investors take a moment to reassess their portfolio allocation

13 min read

Transmission underperformed today. It fell by -0.23% to close at 672.033. During the last week it fell by -1.23% and saw a maximum drawdown of -1.23%.

[Theme constituents]

Buy-and-Hold investors in ~TRANSMISSION experienced a maximum drawdown of -17.57% over the last three months. It fell by -7.76% 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. The net profit from Short signals was +9.56%.

Trend

~TRANSMISSION has been outperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 4 Jan, 2016 to 18 Dec, 2018. Over the last 3 years and 1 month, ~TRANSMISSION underperformed the NIFTY-50 index on 51% days.

During the last three months ~TRANSMISSION was mostly loss making and delivered on average -0.11% per day. It's best return during this period (of +4.95%) was on Friday, 4 Jan, 2019. While it's worst loss in the same period (of -6.86%) was on Monday, 19 Nov, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 1 Jan, 2019 and went on till 8 Jan, 2019. This bullish trend returned +14.22% to investors.

During the last year ~TRANSMISSION had 5 profitable months and 7 loss making months. ~TRANSMISSION returned profits in more months than NIFTY-50 index. ~TRANSMISSION was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Oct 2018, returned -46.11% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~TRANSMISSION had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Feb 2018 to May 2018) during which period it delivered -17.03%.

When you stop chasing the wrong things you give the right things a chance to catch you.
-- Lolly Daskal

~TRANSMISSION 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 ~TRANSMISSION's volatility from 26 Oct, 2018 to 29 Oct, 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 ~TRANSMISSION has significant positive skewness in it's return distribution. This indicates that investors can expect ~TRANSMISSION to recover from drawdowns quickly. Which makes ~TRANSMISSION 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 ~TRANSMISSION. Therefore, NIFTY-50 must receive a lower allocation than ~TRANSMISSION in your portfolio. ~TRANSMISSION usually has shorter drawdown period than the NIFTY-50 index.

Based on your interest in ~TRANSMISSION you may find it interesting to know that ASTRAZEN, VINATIORGA and RESPONIND are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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