ANDHRA SUGARS LTD underperformed broader market today. It delivered -0.31% to close at 325.95. During the last week it delivered -0.18% and saw a maximum drawdown of -1.69% before bouncing back.
ANDHRSUGAR is currently in a bearish trend. Over the last three months trading short signals has not been a profitable strategy for ANDHRSUGAR's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -4.26%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to ANDHRSUGAR.
ANDHRSUGAR has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 11 Feb, 2016 to 23 Jan, 2018. Over the last 3 years and 1 month, ANDHRSUGAR outperformed the NIFTY-50 index on 48% days. Which indicates that on days ANDHRSUGAR outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
ANDHRSUGAR returned losses on 58% days in the last three months. During this time, it delivered on average -0.05% per day. It delivered it's best daily return of +6.93%, during this period, on Monday, 29 Oct, 2018. The longest stort-term trend during this period was 9 losing days, which started on 15 Nov, 2018 and ended on 28 Nov, 2018. This bearish trend lost -12.2% of investor capital.
The last 12 months saw ANDHRSUGAR's investors making profits in 4 months and incurring losses in 8 months. ANDHRSUGAR was less consistent in delivering monthly returs than NIFTY-50 index. ANDHRSUGAR was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Feb 2018, returned -22.81% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ANDHRSUGAR 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 -63.7%. It is interesting to note that both ANDHRSUGAR and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
I always said that if I wasn't studying psychopaths in prison, I'd do it at the stock exchange.
-- Robert D. Hare
ANDHRSUGAR 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 fall in ANDHRSUGAR's volatility from 30 Oct, 2018 to 7 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 ANDHRSUGAR has significant negative skewness in it's return distribution. This indicates that ANDHRSUGAR is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than ANDHRSUGAR. Therefore, NIFTY-50 must receive a lower allocation than ANDHRSUGAR in your portfolio. NIFTY-50 index usually has shorter drawdown period than ANDHRSUGAR.
Based on your interest in ANDHRSUGAR you may find it interesting to know that BRITANNIA, BAJFINANCE and ~MKTCAP201TO250 have all shown remarkable performance and qualify to be on every investor's watchlist.
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