WIPRO LTD (FOREIGN)

5.19 -0.13 (-2.44%) Buy

Search for alternative investments is on for WIT investors as it shows weakness

13 min read

WIT was among the worst performers today. On a longer term basis, investors in WIPRO LTD (Foreign) made +0.02% per day. Friday's performance of -2.44% was a underperformance compared to it's daily average.

[Themes containing WIT]

Buy-and-Hold investors in WIT experienced a maximum drawdown of -9.12% over the last three months. It delivered -1.33% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were marginally more profitable than the long signals.

Trend

WIT has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 15 Apr, 2016 to 5 Jun, 2018. Over the last 2 years 11 months and 10 days, WIT underperformed the SP500 index on 50% days. Which indicates that on days WIT underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

WIT returned losses on 53% days in the last three months. During this time, it delivered on average -0.01% per day. It delivered it's best daily return of +4.92%, during this period, on Thursday, 25 Oct, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 17 Sep, 2018 and went on till 21 Sep, 2018. This bullish trend returned +1.33% to investors.

The last 12 months saw WIT's investors making profits in 6 months and incurring losses in 6 months. WIT was less consistent in delivering monthly returs than SP500 index. WIT was also a more risky investment than SP500 index as it's worst month in the last year, Apr 2018, returned -8.25% compared to -7.28% returned by SP500 index in Oct 2018. WIT had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

If you totally want to reduce risk, take no risk. Bury the money. Then you've got no risk at all.
-- Don Connelly

WIT is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in WIT's volatility from 21 Sep, 2018 to 20 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that WIT has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

WIT has more chance of extreme outcomes than the SP500 index. Therefore, WIT must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than WIT.

Based on your interest in WIT you may find it interesting to know that AMRH has shown remarkable performance and deserves to be on every investors' watchlist.

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