BODAL CHEMICALS LTD

109.3 -2.06 (-1.89%) Buy

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

13 min read

BODALCHEM was among the worst performers today. On a longer term basis, investors in BODAL CHEMICALS LTD made +0.15% per day. Tuesday's performance of -1.89% was a underperformance compared to it's daily average.

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Buy-and-Hold investors in BODALCHEM experienced a maximum drawdown of -17.14% over the last three months. It fell by -6.58% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.

Trend

BODALCHEM has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 18 Jan, 2016 to 13 Jul, 2017. Over the last 3 years and 1 month, BODALCHEM outperformed the NIFTY-50 index on 47% days. Which indicates that on days BODALCHEM 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 BODALCHEM was mostly loss making and delivered on average -0.1% per day. It's best return during this period (of +3.34%) was on Tuesday, 11 Dec, 2018. While it's worst loss in the same period (of -4.2%) was on Monday, 10 Dec, 2018. The longest stort-term trend during this period was 10 losing days, which started on 12 Nov, 2018 and ended on 26 Nov, 2018. This bearish trend lost -12.05% of investor capital.

During the last year BODALCHEM had 4 profitable months and 8 loss making months. BODALCHEM returned profits in fewer months than NIFTY-50 index. BODALCHEM significantly outperformed NIFTY-50 index in May 2018, when it returned +24.83% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. BODALCHEM 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 -37.65%. It is interesting to note that both BODALCHEM and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"We ignore outlooks and forecasts.. we're lousy at it and we admit it .. everyone else is lousy too, but most people won't admit it.

BODALCHEM is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in BODALCHEM's volatility from 23 Oct, 2018 to 2 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 BODALCHEM has significant negative skewness in it's return distribution. This indicates that BODALCHEM is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in BODALCHEM), IGARASHI is a small cap that deserves to be closely tracked for investment opportunities.

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