ALCHEMIST LTD

2.75 +0.05 (+1.85%) Buy

Don't exit ALCHEM now, it outperformed most of it's peers

13 min read

ALCHEM was among the best performers today. On a longer term basis, investors in ALCHEMIST LTD made -0.21% per day. Wednesday's performance of +1.85% was a significant outperformance compared to it's daily average.

[Themes containing ALCHEM]

ALCHEM showed a strong down trend over the last 3 months. During this period ALCHEM lost -30.38% and saw a maximum drawdown of -56.96%. There was a short signal during this period which returned +50.63%.

Trend

ALCHEM has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, ALCHEM underperformed the NIFTY-50 index on 56% days.

During the last three months ALCHEM was mostly loss making and delivered on average -0.52% per day. It's best return during this period (of +5.0%) was on Friday, 21 Dec, 2018. While it's worst loss in the same period (of -5.0%) was on Tuesday, 4 Dec, 2018. There was initially a bearish trend during this period which started on 20 Nov, 2018 and went on till 7 Dec, 2018. The trend delivered -46.1% losses to investors. This was followed by a bullish trend that started on 12 Dec, 2018 and ended on 4 Jan, 2019. This bullish trend delivered +57.87% to investors.

ALCHEM had 3 profitable and 9 loss making months over the last year. During the last year, ALCHEM underperformed NIFTY-50 index on monthly return basis. ALCHEM was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Nov 2018, returned -41.67% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ALCHEM had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Jul 2018 to Nov 2018) during which period it delivered -89.52%.

"Behind every stock is a company. Find out what It's doing.

ALCHEM is becoming more volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant fall in ALCHEM's volatility from 24 Oct, 2018 to 4 Jan, 2019. 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 ALCHEM has significant negative skewness in it's return distribution. This indicates that ALCHEM is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in ALCHEM), IGARASHI has performed really well this year and deserves to be closely tracked for investment opportunities.

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