Packaging And Containers THEME

879.128 -2.51 (-0.29%) Sell

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PACKAGING THEME investors dump it

14 min read

Packaging And Containers has destroyed investor wealth on Tuesday. It fell by -0.29% to close at 879.128. It is currently trading -22% below it's 52 week high of 1140.62.

[Theme constituents]

Buy-and-Hold investors in ~PACKAGING experienced a maximum drawdown of -18.48% over the last three months. It fell by -18.0% during this strong 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 +11.19%.


~PACKAGING has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 10 Jul, 2017 to 25 Oct, 2018. Over the last 1 year 9 months and 3 days, ~PACKAGING underperformed the SP500 index on 49% days. Which indicates that on days ~PACKAGING underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ~PACKAGING was mostly loss making and delivered on average -0.31% per day. It's best return during this period (of +3.43%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -3.74%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 8 losing days, which started on 3 Oct, 2018 and ended on 12 Oct, 2018. This bearish trend lost -9.53% of investor capital.

During the last year ~PACKAGING had 5 profitable months and 7 loss making months. ~PACKAGING returned profits in fewer months than SP500 index. ~PACKAGING was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -11.89% compared to -7.75% returned by SP500 index in Dec 2018. ~PACKAGING and SP500 index, both had periods of 2 consecutive losing months. It is interesting to note that both ~PACKAGING and SP500 index significantly outperform during months when quarterly/annual results are announced.

The hardest thing to understand in the world is the income tax.
-- Albert Einstein

~PACKAGING 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 ~PACKAGING's volatility from 19 Sep, 2018 to 1 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 ~PACKAGING has positive skewness in it's return distribution. This indicates that investors can expect ~PACKAGING to make attempts to recover from drawdowns quickly. Which makes ~PACKAGING a good candidate for momentum based trading on short-term bullish trends or counter-trends.

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

Based on your interest in ~PACKAGING you may find it interesting to know that NIHD has shown remarkable performance this year and deserves to be on every investors' watchlist.

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