92.3 -0.94 (-1.02%) Sell

ASHOKLEY investors treading cautiously as performance is muted

13 min read

ASHOKLEY performed worse than the broader market today. On a longer term basis, investors in ASHOK LEYLAND LTD made +0.14% per day. Friday's performance of -1.02% was a significant underperformance compared to it's daily average.

[Themes containing ASHOKLEY]

Buy-and-Hold investors in ASHOKLEY experienced a maximum drawdown of -24.25% over the last three months. It returned -17.96% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +17.96% for investors.


ASHOKLEY has been underperforming the NIFTY-50 index in recent time, after having outperformed till 25 Apr, 2018. ASHOKLEY 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, ASHOKLEY underperformed the NIFTY-50 index on 49% days. Which indicates that on days ASHOKLEY underperforms the NIFTY-50 index, it's performance is marginally worse than on the days it outperforms the NIFTY-50 index.

During the last three months ASHOKLEY was mostly loss making and delivered on average -0.29% per day. It's best return during this period (of +4.8%) was on Wednesday, 24 Oct, 2018. While it's worst loss in the same period (of -10.5%) was on Wednesday, 14 Nov, 2018. There was initially a bullish trend during this period which started on 2 Nov, 2018 and went on till 7 Nov, 2018. The bullish trend returned +7.35% to investors. This was followed by a bearish trend that started on 20 Dec, 2018 and ended on 31 Dec, 2018. This bearish trend lost -4.92% of investor capital.

On monthly basis, ASHOKLEY delivered losses in more months over the last year, than profits. ASHOKLEY delivered profits less regularly than NIFTY-50 index. ASHOKLEY was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -15.28% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ASHOKLEY had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Sep 2018 to Jan 2019) during which period it delivered -33.02%.

Your investment belongs to the market and your profits belong to you.
-- Vijay Kedia

ASHOKLEY 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 ASHOKLEY's volatility from 5 Nov, 2018 to 18 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 ASHOKLEY has significant positive skewness in it's return distribution. This indicates that investors can expect ASHOKLEY to recover from drawdowns quickly. Which makes ASHOKLEY a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

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

On a general note (since you are interested in ASHOKLEY), three instruments that are extremely volatile are SRIPIPES, ~HOMEAPPLIANCES and HATSUN. They must all be evaluated prudently and investors are better off avoiding them at the moment.

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