APOLLOTYRE investors re-evaluating their investment strategy

APOLLO TYRES LTD performed worse than the broader market today. It fell by -0.23% to close at 217.9. It's recent 5 day performance has been -0.21%, -1.95%, -0.09%, -1.13% and -0.57%.

[Themes containing APOLLOTYRE]

APOLLOTYRE is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +0.17% for investors.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

APOLLOTYRE has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 19 Jan, 2016 to 16 Apr, 2018. Over the last 3 years and 1 month, APOLLOTYRE outperformed the NIFTY-50 index on 49% days. Which indicates that on days APOLLOTYRE outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

During the last three months APOLLOTYRE delivered losses on 54% days. However, it still managed to end this period in a profit. It's best return during this period (of +4.48%) was on Wednesday, 24 Oct, 2018. While it's worst loss in the same period (of -4.87%) was on Tuesday, 23 Oct, 2018. The longest stort-term trends during this period were 6 profitable and losing days. The bullish trend (which returned +11.06%) started on 24 Oct, 2018 and went on till 31 Oct, 2018 while the bearish trend (which returned -4.18%) started on 11 Jan, 2019 and went on till 18 Jan, 2019.

During the last year APOLLOTYRE had 6 profitable months and 6 loss making months. APOLLOTYRE returned profits in more months than NIFTY-50 index. APOLLOTYRE significantly outperformed NIFTY-50 index in Jul 2018, when it returned +17.4% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. APOLLOTYRE had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered +14.92%. It is interesting to note that both APOLLOTYRE and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Investing is a business, investment is a project and investor is a promoter.
-- Vijay Kedia

APOLLOTYRE 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 APOLLOTYRE's volatility from 29 Oct, 2018 to 15 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 APOLLOTYRE has significant positive skewness in it's return distribution. This indicates that investors can expect APOLLOTYRE to recover from drawdowns quickly. Which makes APOLLOTYRE a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in APOLLOTYRE derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in APOLLOTYRE you may find it interesting to know that NIITTECH, VINATIORGA and IGARASHI are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.