28.6 -0.15 (-0.52%) Sell

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

13 min read

ANDHRA BANK performed worse than the broader market on Friday. It lost -0.52% to close at 28.6. On a day when the overall market breadth was 71%, it closed higher than 18% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing ANDHRABANK]

ANDHRABANK is currently in a down trend. The previous short signal in ANDHRABANK has not been profitable for investors in general. If you are short on ANDHRABANK at current levels please make sure that your allocation is limited and that your portfolio is well diversified.


ANDHRABANK has been underperforming the NIFTY-50 index in recent time, after having outperformed till 1 Jan, 2016. Over the last 3 years and 1 month, ANDHRABANK underperformed the NIFTY-50 index on 55% days.

ANDHRABANK returned losses on 62% days in the last three months. During this time, it delivered on average +0.16% per day. It delivered it's best daily return of +5.22%, during this period, on Wednesday, 31 Oct, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 1 Nov, 2018. The bullish trend returned +14.01% to investors. This was followed by a bearish trend that started on 9 Nov, 2018 and ended on 15 Nov, 2018. This bearish trend lost -6.1% of investor capital.

ANDHRABANK had 3 profitable and 9 loss making months over the last year. During the last year, ANDHRABANK underperformed NIFTY-50 index on monthly return basis. ANDHRABANK was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -19.17% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ANDHRABANK had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -48.71%. It is interesting to note that both ANDHRABANK and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down.
-- Warren Edward Buffett

ANDHRABANK 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 surge in ANDHRABANK's volatility from 26 Oct, 2018 to 6 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 ANDHRABANK has significant negative skewness in it's return distribution. This indicates that ANDHRABANK is very risky for short-term investment and can significantly underperform for long durations.

Investors trading in ANDHRABANK derivatives at this moment can consider 'Long Straddle' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in ANDHRABANK), two instruments that deserve special mention are IGARASHI and LTI. They have significantly outperformed the overall market this year.

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