137.85 -6.66 (-4.83%) Buy

8KMILES investors herd to book profits while the going is good

13 min read

8K MILES SOFT SERV LTD was among the worst performers today. It delivered -4.83% to close at 137.85. During the last week it delivered -8.13% and saw a maximum drawdown of -9.19% before bouncing back.

[Themes containing 8KMILES]

Buy-and-Hold investors in 8KMILES experienced a maximum drawdown of -37.13% over the last three months. It increased by +40.81% during this strong bullish trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +59.47%.


8KMILES has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 14 Jan, 2016 to 2 Nov, 2018. Over the last 3 years and 1 month, 8KMILES underperformed the NIFTY-50 index on 58% days.

During the last three months 8KMILES was mostly profitable and delivered on average +0.67% per day. It's best return during this period (of +9.98%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -9.95%) was on Wednesday, 31 Oct, 2018. The longest stort-term trend during this period was 21 profitable days, which started on 2 Nov, 2018 and went on till 4 Dec, 2018. This bullish trend returned +122.94% to investors.

The last 12 months saw 8KMILES's investors making profits in 3 months and incurring losses in 9 months. 8KMILES was less consistent in delivering monthly returs than NIFTY-50 index. 8KMILES significantly outperformed NIFTY-50 index in Nov 2018, when it returned +169.18% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. 8KMILES had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from May 2018 to Jul 2018) during which period it delivered -68.68%.

The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.
-- T.T. Munger

8KMILES is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant surge in 8KMILES's volatility from 23 Oct, 2018 to 2 Nov, 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 8KMILES has significant negative skewness in it's return distribution. This indicates that 8KMILES is very risky for short-term investment and can significantly underperform for long durations.

NIFTY-50 index has more chance of extreme outcomes than 8KMILES. Therefore, NIFTY-50 must receive a lower allocation than 8KMILES in your portfolio. NIFTY-50 index usually has shorter drawdown period than 8KMILES.

On a general note (since you are interested in 8KMILES), three instruments that are extremely volatile are HATSUN, NIFTY50-DIV-POINT and TIDEWATER. They must all be evaluated prudently and investors are better off avoiding them at the moment.

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