56.5 -0.05 (-0.09%) Sell

Search for alternative investments is on for BGRENERGY investors as it underperforms broader market

13 min read

BGR ENERGY SYSTEMS LTD trailed the broader market today. It returned -0.09% to close at 56.5. It's recent 5 day performance has been -1.48%, -2.21%, -2.0%, -0.83% and +0.17%.

[Themes containing BGRENERGY]

BGRENERGY is currently in a down trend. Over the last three months trading short signals has not been a profitable strategy for BGRENERGY's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned +4.63%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to BGRENERGY.


BGRENERGY has been underperforming the NIFTY-50 index in recent time, after having outperformed till 10 May, 2017. Over the last 3 years and 1 month, BGRENERGY underperformed the NIFTY-50 index on 58% days.

During the last three months BGRENERGY delivered losses on 58% days. However, it still managed to end this period in a profit. It's best return during this period (of +15.97%) was on Monday, 12 Nov, 2018. While it's worst loss in the same period (of -3.62%) was on Friday, 21 Dec, 2018. There was initially a bearish trend during this period which started on 20 Nov, 2018 and went on till 28 Nov, 2018. The trend delivered -8.85% losses to investors. This was followed by a bullish trend that started on 26 Dec, 2018 and ended on 1 Jan, 2019. This bullish trend delivered +3.73% to investors.

On monthly basis, BGRENERGY delivered losses in more months over the last year, than profits. BGRENERGY delivered profits less regularly than NIFTY-50 index. BGRENERGY was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -31.16% compared to -6.42% returned by NIFTY-50 index in Sep 2018. BGRENERGY had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from May 2018 to Sep 2018) during which period it delivered -59.08%. It is interesting to note that both BGRENERGY and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Believe you can and you're halfway there.
-- Theodore Roosevelt

BGRENERGY is becoming less volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant fall in BGRENERGY's volatility from 20 Nov, 2018 to 15 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 BGRENERGY has significant negative skewness in it's return distribution. This indicates that BGRENERGY is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in BGRENERGY), three instruments that deserve special mention are HATSUN, CUB and RESPONIND. They have all outperformed the market and must be closely watched for investment opportunities.

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