1647.54 +13.91 (+0.84%) Sell

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Looking to invest in TYRES THEME? Look for alternatives because it performed worse than the broader market

14 min read

Tyres performed worse than the broader market on Tuesday. It delivered +0.84% to close at 1647.54. On a day when the overall market breadth was 71%, it closed higher than 55% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.19%.

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~TYRES showed a bearish trend over the last 3 months. During this period ~TYRES fell by -7.05% and saw a maximum drawdown of -16.91%. There were 2 short signals during this period that returned a cumulative of +1.24% to investors.


~TYRES has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 23 Jun, 2016 to 9 Jan, 2018. Over the last 2 years and 12 months, ~TYRES outperformed the NIFTY-50 index on 48% days. Which indicates that on days ~TYRES outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

During the last three months ~TYRES delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +4.84%) was on Wednesday, 10 Oct, 2018. While it's worst loss in the same period (of -4.17%) was on Friday, 21 Sep, 2018. The longest stort-term trends during this period were 6 profitable and losing days. The bullish trend (which returned +11.39%) started on 26 Oct, 2018 and went on till 2 Nov, 2018 while the bearish trend (which returned -6.9%) started on 3 Dec, 2018 and went on till 10 Dec, 2018.

During the last year ~TYRES had 6 profitable months and 6 loss making months. Profitable number of months of ~TYRES and NIFTY-50 index were the same. ~TYRES was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -20.66% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~TYRES and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both ~TYRES and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

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~TYRES 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 ~TYRES's volatility from 21 Sep, 2018 to 4 Dec, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 21 Sep, 2018 to 5 Dec, 2018.

Advanced/professional short-term investors should note that ~TYRES has significant negative skewness in it's return distribution. This indicates that ~TYRES is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in ~TYRES you may find it interesting to know that LTI, CUB and LTTS are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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