AUTOAXLES investors re-evaluating their investment strategy
18 Jan, 201913 min read
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AUTOMOTIVE AXLES LIMITED performed worse than the broader market on Friday. It delivered -0.8% to close at 1211.45. It is currently trading -31% below it's 52 week high of 1766.0.
Buy-and-Hold investors in AUTOAXLES experienced a maximum drawdown of -17.61% over the last three months. It increased by +10.11% during this strong bullish trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.
AUTOAXLES has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 17 Mar, 2017 to 12 Feb, 2018. Over the last 3 years and 1 month, AUTOAXLES outperformed the NIFTY-50 index on 46% days. Which indicates that on days AUTOAXLES 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 AUTOAXLES delivered losses on 55% days. However, it still managed to end this period in a profit. It's best return during this period (of +7.64%) was on Thursday, 15 Nov, 2018. While it's worst loss in the same period (of -5.65%) was on Tuesday, 23 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 7 Jan, 2019 and ended on 14 Jan, 2019. This bearish trend lost -6.19% of investor capital.
The last 12 months saw AUTOAXLES's investors making profits in 4 months and incurring losses in 8 months. AUTOAXLES was less consistent in delivering monthly returs than NIFTY-50 index. AUTOAXLES significantly outperformed NIFTY-50 index in Nov 2018, when it returned +21.96% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. AUTOAXLES and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both AUTOAXLES and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
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AUTOAXLES 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 AUTOAXLES's volatility from 22 Oct, 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 AUTOAXLES has significant negative skewness in it's return distribution. This indicates that AUTOAXLES is very risky for short-term investment and can significantly underperform for long durations.
AUTOAXLES has more chance of extreme outcomes than the NIFTY-50 index. Therefore, AUTOAXLES must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than AUTOAXLES.
Based on your interest in AUTOAXLES you may find it interesting to know that ASTRAZEN, NIITTECH and VINATIORGA are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.
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