Engineering And Construction THEME

1207.83 +5.22 (+0.43%) Sell

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

14 min read

Engineering And Construction significantly underperformed today. It increased by +0.43% to close at 1207.83. During the last week it delivered -4.03% and saw a maximum drawdown of -4.44% before bouncing back.

[Theme constituents]

~ENGINEERING is currently in a bearish trend. The current bearish signal has generated a profit of +19.35% for investors in the last three months.


~ENGINEERING has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 6 Nov, 2017 to 13 Dec, 2018. Over the last 2 years 11 months and 14 days, ~ENGINEERING underperformed the SP500 index on 49% days. Which indicates that on days ~ENGINEERING underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ~ENGINEERING was mostly loss making and delivered on average -0.37% per day. It's best return during this period (of +2.81%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -4.6%) was on Tuesday, 4 Dec, 2018. The longest stort-term trends during this period were 5 profitable and losing days. The bullish trend (which returned +9.78%) started on 1 Nov, 2018 and went on till 7 Nov, 2018 while the bearish trend (which returned -2.92%) started on 1 Oct, 2018 and went on till 5 Oct, 2018.

The last 12 months saw ~ENGINEERING's investors making profits in 7 months and incurring losses in 5 months. ~ENGINEERING was less consistent in delivering monthly returs than SP500 index. ~ENGINEERING was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -11.25% compared to -7.75% returned by SP500 index in Dec 2018. ~ENGINEERING had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both ~ENGINEERING and SP500 index significantly outperform during months when quarterly/annual results are announced.

Money is not the only answer, but it makes a difference.
-- Barack Obama

~ENGINEERING 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 ~ENGINEERING's volatility from 19 Sep, 2018 to 12 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that ~ENGINEERING has positive skewness in it's return distribution. This indicates that investors can expect ~ENGINEERING to make attempts to recover from drawdowns quickly. Which makes ~ENGINEERING a good candidate for momentum based trading on short-term bullish trends or counter-trends.

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

Based on your interest in ~ENGINEERING you may find it interesting to know that CCE and OCSI have both performed similar to ~ENGINEERING and can be considered by investors as alternative investment options.

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