ANDHRSUGAR continues its fall as more investors loose confidence

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.

[Themes containing ANDHRSUGAR]

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.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

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.