AUTOLINE INDUSTRIES LTD

65.8 -0.79 (-1.2%) Sell

AUTOIND investors take a moment to reassess their portfolio allocation

13 min read

AUTOLINE INDUSTRIES LTD trailed the broader market on Friday. It delivered -1.2% to close at 65.8. It is currently trading -44% below it's 52 week high of 117.65.

[Themes containing AUTOIND]

Buy-and-Hold investors in AUTOIND experienced a maximum drawdown of -18.83% over the last three months. It delivered +10.4% 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. The net profit from Long signals was +4.33%.

Trend

AUTOIND has been outperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 1 Dec, 2017 to 10 Dec, 2018. Over the last 3 years and 1 month, AUTOIND underperformed the NIFTY-50 index on 56% days.

During the last three months AUTOIND delivered losses on 60% days. However, it still managed to end this period in a profit. It's best return during this period (of +12.66%) was on Tuesday, 11 Dec, 2018. While it's worst loss in the same period (of -4.55%) was on Monday, 10 Dec, 2018. The longest stort-term trend during this period was 8 losing days, which started on 29 Nov, 2018 and ended on 10 Dec, 2018. This bearish trend lost -15.41% of investor capital.

The last 12 months saw AUTOIND's investors making profits in 6 months and incurring losses in 6 months. During the last year, AUTOIND and NIFTY-50 index had the same number of profitable months. AUTOIND significantly outperformed NIFTY-50 index in Apr 2018, when it returned +35.31% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. AUTOIND and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both AUTOIND and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.

AUTOIND 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 AUTOIND's volatility from 22 Oct, 2018 to 7 Dec, 2018. 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 AUTOIND has significant negative skewness in it's return distribution. This indicates that AUTOIND is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in AUTOIND you may find it interesting to know that INFY is a large cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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