BHARAT GEARS LTD. showed weakness on Tuesday. It lost -1.04% to close at 171.4. On a day when the overall market breadth was 70%, it closed higher than 79% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0036%.
Buy-and-Hold investors in BHARATGEAR experienced a maximum drawdown of -15.61% over the last three months. It grew by +5.77% during this up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.
BHARATGEAR has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, BHARATGEAR outperformed the NIFTY-50 index on 45% days. Which indicates that on days BHARATGEAR 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 BHARATGEAR delivered losses on 53% days. However, it still managed to end this period in a profit. It's best return during this period (of +8.62%) was on Monday, 14 Jan, 2019. While it's worst loss in the same period (of -4.49%) was on Tuesday, 15 Jan, 2019. There was initially a bearish trend during this period which started on 31 Oct, 2018 and went on till 6 Nov, 2018. The trend delivered -6.23% losses to investors. This was followed by a bullish trend that started on 11 Dec, 2018 and ended on 20 Dec, 2018. This bullish trend delivered +10.75% to investors.
BHARATGEAR had 6 profitable and 6 loss making months over the last year. BHARATGEAR was profitable in more months than NIFTY-50 index. BHARATGEAR was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -13.18% compared to -6.42% returned by NIFTY-50 index in Sep 2018. BHARATGEAR and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both BHARATGEAR and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
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-- Mahatma Gandhi
BHARATGEAR 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 BHARATGEAR's volatility from 30 Oct, 2018 to 10 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 BHARATGEAR has significant negative skewness in it's return distribution. This indicates that BHARATGEAR is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than BHARATGEAR. Therefore, NIFTY-50 must receive a lower allocation than BHARATGEAR in your portfolio. NIFTY-50 index usually has shorter drawdown period than BHARATGEAR.
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