AXISCADES ENGG TECH LTD

74.05 +1.79 (+2.42%) Sell

AXISCADES investors considering profit booking at current levels

14 min read

AXISCADES ENGG TECH LTD ranked among the best performers on Tuesday. It delivered +2.42% to close at 74.05. It is currently trading -64% below it's 52 week high of 207.8.

[Themes containing AXISCADES]

AXISCADES is currently in a bearish trend. Over the last three months Buy-and-Hold has been a better strategy (returning +12.37%) for AXISCADES's investors than shorting it.

Trend

AXISCADES has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 1 Jan, 2016 to 30 Aug, 2018. Over the last 3 years and 1 month, AXISCADES underperformed the NIFTY-50 index on 55% days.

During the last three months AXISCADES delivered losses on 53% days. However, it still managed to end this period in a profit. It's best return during this period (of +19.95%) was on Wednesday, 21 Nov, 2018. While it's worst loss in the same period (of -11.23%) was on Monday, 21 Jan, 2019. The longest stort-term trend during this period was 8 profitable days, which started on 25 Oct, 2018 and went on till 5 Nov, 2018. This bullish trend returned +29.11% to investors.

The last 12 months saw AXISCADES's investors making profits in 4 months and incurring losses in 8 months. AXISCADES was less consistent in delivering monthly returs than NIFTY-50 index. AXISCADES was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -32.84% compared to -6.42% returned by NIFTY-50 index in Sep 2018. AXISCADES and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both AXISCADES and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Wealth after all is a relative thing since he that has little and wants less is richer than he that has much and wants more.
-- Charles Caleb Colton

AXISCADES is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in AXISCADES's volatility from 25 Oct, 2018 to 14 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 AXISCADES has significant negative skewness in it's return distribution. This indicates that AXISCADES is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in AXISCADES), if you are evaluating AXISCADES as an investment candidate, then you should read about USHAMART which has delivered similar performance and can help diversify your portfolio.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter