BALAMINES investors herd to book profits while the going is good

BALAJI AMINES LIMITED is a falling knife that can bleed you if you catch it on Wednesday. It fell by -1.4% to close at 492.45. On a day when the overall market breadth was 70%, it closed higher than 91% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0084%.

[Themes containing BALAMINES]

BALAMINES is currently in a bullish trend. Over the last three months Buy-and-Hold has been a better strategy (returning +10.12%) for BALAMINES's investors than trading long signals.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

BALAMINES has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 22 Jan, 2016 to 8 Jan, 2018. Over the last 3 years and 1 month, BALAMINES outperformed the NIFTY-50 index on 46% days. Which indicates that on days BALAMINES 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 BALAMINES delivered losses on 58% days. However, it still managed to end this period in a profit. It's best return during this period (of +9.29%) was on Wednesday, 16 Jan, 2019. While it's worst loss in the same period (of -4.92%) was on Thursday, 1 Nov, 2018. The longest stort-term trends during this period were 4 profitable and losing days. The bullish trend (which returned +2.33%) started on 27 Dec, 2018 and went on till 1 Jan, 2019 while the bearish trend (which returned -7.21%) started on 20 Nov, 2018 and went on till 26 Nov, 2018.

During the last year BALAMINES had 5 profitable months and 7 loss making months. BALAMINES returned profits in more months than NIFTY-50 index. BALAMINES significantly outperformed NIFTY-50 index in Apr 2018, when it returned +21.01% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. BALAMINES and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both BALAMINES and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Making money from enforcing patents is no more wrong than investing in preferred stock.
-- Nathan Myhrvold

BALAMINES 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 BALAMINES's volatility from 16 Nov, 2018 to 4 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 BALAMINES has significant negative skewness in it's return distribution. This indicates that BALAMINES is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in BALAMINES you may find it interesting to know that UNIVCABLES has delivered similar performance as BALAMINES and can be considered as an alternative investment candidate (to BALAMINES).