ASIAN HOTELS (WEST) LTD

304.95 +1.0 (+0.33%) Sell

AHLWEST shows sign of weakness as investors do cost averaging

13 min read

ASIAN HOTELS (WEST) LTD managed to outperform the broader market on Friday. It surged by +0.33% to close at 304.95. On a day when the overall market breadth was 71%, it closed higher than 79% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing AHLWEST]

AHLWEST showed a strong bullish trend over the last 3 months. During this period AHLWEST surged by +10.71% and saw a maximum drawdown of -7.61%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in AHLWEST till volatility reduces and a clear trend emerges.

Trend

AHLWEST has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 30 Mar, 2016 to 23 Apr, 2018. Over the last 3 years and 1 month, AHLWEST outperformed the NIFTY-50 index on 49% days. Which indicates that on days AHLWEST outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

AHLWEST returned losses on 57% days in the last three months. During this time, it delivered on average +0.19% per day. It delivered it's best daily return of +5.34%, during this period, on Monday, 12 Nov, 2018. The longest stort-term trend during this period was 4 profitable days, which started on 25 Oct, 2018 and went on till 31 Oct, 2018. This bullish trend returned +3.62% to investors.

The last 12 months saw AHLWEST's investors making profits in 8 months and incurring losses in 4 months. During the last year, AHLWEST delivered profits in more months than NIFTY-50 index. AHLWEST significantly outperformed NIFTY-50 index in Apr 2018, when it returned +32.95% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. AHLWEST had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered +34.87%.

Try to save something while your salary is small; It's impossible to save after you begin to earn more.
-- Jack Benny

AHLWEST 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 AHLWEST's volatility from 29 Oct, 2018 to 9 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 AHLWEST 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.

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

Based on your interest in AHLWEST you may find it interesting to know that HATSUN is highly volatile and investors investing in it must take extreme caution. Consider either reducing your exposure to HATSUN or sufficiently diversifying your portfolio.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter