ALLSEC underperformed today. On a longer term basis, investors in ALLSEC TECHNOLOGIES LTD made +0.27% per day. Friday's performance of -1.34% was a significant underperformance compared to it's daily average.
Buy-and-Hold investors in ALLSEC experienced a maximum drawdown of -26.45% over the last three months. It returned -22.68% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +16.39%.
ALLSEC returned losses on 59% days in the last three months. During this time, it delivered on average -0.38% per day. It delivered it's worst daily return of -10.72%, during this period, on Wednesday, 14 Nov, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 31 Oct, 2018. The bullish trend returned +5.73% to investors. This was followed by a bearish trend that started on 31 Dec, 2018 and ended on 7 Jan, 2019. This bearish trend lost -6.94% of investor capital.
On monthly basis, ALLSEC delivered losses in more months over the last year, than profits. ALLSEC delivered profits less regularly than NIFTY-50 index. ALLSEC was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -23.61% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ALLSEC had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from May 2018 to Aug 2018) during which period it delivered -52.29%. It is interesting to note that both ALLSEC and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Finance is not merely about making money. It's about achieving our deep goals and protecting the fruits of our labor. It's about stewardship and, therefore, about achieving the good society.
-- Robert J. Shiller
ALLSEC is becoming less 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 ALLSEC's volatility from 19 Oct, 2018 to 21 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 ALLSEC has significant negative skewness in it's return distribution. This indicates that ALLSEC is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than ALLSEC. Therefore, NIFTY-50 must receive a lower allocation than ALLSEC in your portfolio. NIFTY-50 index usually has shorter drawdown period than ALLSEC.
On a general note (since you are interested in ALLSEC), if you are evaluating ALLSEC as an investment candidate, then you should read about SUDARSCHEM which has delivered similar performance and can help diversify your portfolio.
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