Waiting to invest in ADANIPORTS? Consider it, because it managed to outperform the broader market

ADANIPORTS managed to outperform the broader market today. On a longer term basis, investors in ADANI PORT & SEZ LTD made +0.06% per day. Tuesday's performance of +0.4% was a outperformance compared to it's daily average.

[Themes containing ADANIPORTS]

ADANIPORTS showed a flat trend over the last 3 months. During this period ADANIPORTS delivered +0.13% and saw a maximum drawdown of -18.96%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in ADANIPORTS till volatility reduces and a clear trend emerges.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

ADANIPORTS has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 19 May, 2016 to 2 Nov, 2017. Over the last 2 years and 12 months, ADANIPORTS outperformed the NIFTY-50 index on 48% days. Which indicates that on days ADANIPORTS outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

ADANIPORTS returned losses on 52% days in the last three months. During this time, it delivered on average +0.04% per day. It delivered it's best daily return of +7.33%, during this period, on Monday, 29 Oct, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 15 Nov, 2018 and went on till 27 Nov, 2018. This bullish trend returned +10.71% to investors.

The last 12 months saw ADANIPORTS's investors making profits in 5 months and incurring losses in 7 months. ADANIPORTS was less consistent in delivering monthly returs than NIFTY-50 index. ADANIPORTS significantly outperformed NIFTY-50 index in Nov 2018, when it returned +14.68% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. ADANIPORTS had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -21.79%. It is interesting to note that both ADANIPORTS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Empty pockets never held anyone back. Only empty heads and empty hearts can do that.
-- Norman Vincent Peale

ADANIPORTS 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 fall in ADANIPORTS's volatility from 21 Sep, 2018 to 5 Dec, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 21 Sep, 2018 to 5 Dec, 2018.

Advanced/professional short-term investors should note that ADANIPORTS 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.

Investors trading in ADANIPORTS derivatives at this moment can consider 'Married Put' options strategy to receive better risk-adjusted returns.

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

Based on your interest in ADANIPORTS you may find it interesting to know that IEX and ~HOMEAPPLIANCES are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).