Search for alternative investments is on for AMBUJACEM investors as it underperforms

AMBUJA CEMENTS LTD delivered lacklustre performance today. It returned -1.21% to close at 212.65. During the last week it returned -1.02% and saw a maximum drawdown of -1.94% before bouncing back.

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Buy-and-Hold investors in AMBUJACEM experienced a maximum drawdown of -8.96% over the last three months. It gained +1.65% during this up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.

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AMBUJACEM has been underperforming the NIFTY-50 index in recent time, after having outperformed till 19 Aug, 2016. Over the last 3 years and 1 month, AMBUJACEM underperformed the NIFTY-50 index on 52% days.

AMBUJACEM was profitable on 50% 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 +4.0%, during this period, on Tuesday, 11 Dec, 2018. There was initially a bearish trend during this period which started on 22 Oct, 2018 and went on till 26 Oct, 2018. The trend delivered -9.29% losses to investors. This was followed by a bullish trend that started on 31 Oct, 2018 and ended on 5 Nov, 2018. This bullish trend delivered +6.6% to investors.

On monthly basis, AMBUJACEM delivered profits and losses in equal number of months. AMBUJACEM delivered profits in more months than NIFTY-50 index. AMBUJACEM was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -18.05% compared to -6.42% returned by NIFTY-50 index in Sep 2018. AMBUJACEM had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Jun 2018 to Aug 2018) during which period it delivered +21.03%. It is interesting to note that both AMBUJACEM and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

The studios don't finance anymore, they get outside funds.
-- Robert Rodriguez

AMBUJACEM 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 AMBUJACEM's volatility from 24 Oct, 2018 to 18 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 AMBUJACEM 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 AMBUJACEM derivatives at this moment can consider 'Long Strangle' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in AMBUJACEM), two small cap instruments that deserve special mention are NIITTECH and VINATIORGA. They have significantly outperformed the overall market.