20.7 -0.49 (-2.36%) Sell

ARROWTEX investors take a massive hit

13 min read

ARROW TEXTILES LIMITED ranked among the worst performers on Friday. It lost -2.36% to close at 20.7. On a day when the overall market breadth was 71%, it closed higher than 90% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing ARROWTEX]

ARROWTEX is currently in a down trend. The current bearish signal has generated a profit of +15.68% for investors in the last three months.


ARROWTEX has been underperforming the NIFTY-50 index in recent time, after having outperformed till 13 Jan, 2016. ARROWTEX is currently at it's worst performance to the NIFTY-50 index and therefore does not make a good investment candidate. Over the last 3 years and 1 month, ARROWTEX underperformed the NIFTY-50 index on 57% days.

ARROWTEX returned losses on 59% days in the last three months. During this time, it delivered on average -0.25% per day. It delivered it's worst daily return of -7.5%, during this period, on Wednesday, 2 Jan, 2019. There was initially a bearish trend during this period which started on 21 Dec, 2018 and went on till 27 Dec, 2018. The trend delivered -1.87% losses to investors. This was followed by a bullish trend that started on 9 Jan, 2019 and ended on 15 Jan, 2019. This bullish trend delivered +2.81% to investors.

ARROWTEX had 4 profitable and 8 loss making months over the last year. During the last year, ARROWTEX underperformed NIFTY-50 index on monthly return basis. ARROWTEX was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -17.12% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ARROWTEX and NIFTY-50 index, both had periods of 2 consecutive losing months.

"The underlying principles of sound investment should not alter from decade to decade, but the application of these principles must be adapted to significant changes in the financial mechanisms and climate.

ARROWTEX 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 ARROWTEX's volatility from 22 Oct, 2018 to 11 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 ARROWTEX has significant negative skewness in it's return distribution. This indicates that ARROWTEX is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in ARROWTEX), two instruments that deserve special mention are BRITANNIA and NIFTY-GS-15YRPLUS. They have significantly outperformed the overall market.

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