108.75 -1.77 (-1.63%) Buy

Stop-loss on the minds of BALRAMCHIN investors as it underperforms

13 min read

BALRAMPUR CHINI MILLS LTD ranked among the worst performers on Friday. It fell by -1.63% to close at 108.75. It is currently trading +82% above it's 52 week low of 59.65 and is down only -19% from it's 52 week high.

[Themes containing BALRAMCHIN]

Buy-and-Hold investors in BALRAMCHIN experienced a maximum drawdown of -17.29% over the last three months. It delivered +11.77% during this strong bullish trending period. There were no short signals during this period, while the long signal generated good profits of +11.77% for investors.


BALRAMCHIN has been outperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 7 Aug, 2017 to 16 May, 2018. Over the last 3 years and 1 month, BALRAMCHIN outperformed the NIFTY-50 index on 49% days. Which indicates that on days BALRAMCHIN 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 BALRAMCHIN was mostly profitable and delivered on average +0.21% per day. It's best return during this period (of +7.53%) was on Monday, 12 Nov, 2018. While it's worst loss in the same period (of -5.39%) was on Monday, 5 Nov, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 24 Oct, 2018 and went on till 30 Oct, 2018. This bullish trend returned +14.1% to investors.

During the last year BALRAMCHIN had 6 profitable months and 6 loss making months. BALRAMCHIN returned profits in more months than NIFTY-50 index. BALRAMCHIN significantly outperformed NIFTY-50 index in Oct 2018, when it returned +46.28% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. BALRAMCHIN had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered -49.56%. It is interesting to note that both BALRAMCHIN and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

I understand that finance can be very complex.
-- Kevin Harrington

BALRAMCHIN 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 BALRAMCHIN's volatility from 19 Oct, 2018 to 28 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 BALRAMCHIN has significant negative skewness in it's return distribution. This indicates that BALRAMCHIN is very risky for short-term investment and can significantly underperform for long durations.

Investors trading in BALRAMCHIN derivatives at this moment can consider 'Married Put' options strategy to receive better risk-adjusted returns.

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

Based on your interest in BALRAMCHIN you may find it interesting to know that ~MKTCAP201TO250 and BAJFINANCE have both shown remarkable performance and deserve to be on every investors' watchlist.

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