71.45 -1.66 (-2.32%) Sell

Prayers for ABAN investors as it delivered massive losses

13 min read

ABAN was among the worst performers today. On a longer term basis, investors in ABAN OFFSHORE LTD. made -0.17% per day. Tuesday's performance of -2.32% was a underperformance compared to it's daily average.

[Themes containing ABAN]

Buy-and-Hold investors in ABAN experienced a maximum drawdown of -20.24% over the last three months. It delivered -3.32% during this bearish trending period. There were no long signals during this period, where the short signal generated profits of +3.32% for investors.


ABAN has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 17 Oct, 2016 to 22 Jan, 2019. One must note that ABAN is currently at it's worst performance to the NIFTY-50 index which makes it a bad investment candidate. Over the last 3 years and 1 month, ABAN underperformed the NIFTY-50 index on 57% days.

During the last three months ABAN was mostly loss making and delivered on average -0.03% per day. It's best return during this period (of +7.93%) was on Tuesday, 11 Dec, 2018. While it's worst loss in the same period (of -3.83%) was on Wednesday, 14 Nov, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 29 Oct, 2018 and went on till 7 Nov, 2018. This bullish trend returned +15.8% to investors.

The last 12 months saw ABAN's investors making profits in 4 months and incurring losses in 8 months. ABAN was less consistent in delivering monthly returs than NIFTY-50 index. ABAN was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -28.74% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ABAN and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both ABAN and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

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ABAN 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 surge in ABAN's volatility from 23 Oct, 2018 to 11 Dec, 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 ABAN has significant negative skewness in it's return distribution. This indicates that ABAN is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in ABAN), three instruments that deserve special mention are BRITANNIA, ~MUTHOOTGRP and BAJFINANCE. They have all outperformed the market and must be closely watched for investment opportunities.

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