BROOKS LAB LIMITED performed worse than the broader market on Wednesday. It returned -0.46% to close at 54.4. On a day when the overall market breadth was 70%, it closed higher than 74% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0084%.
Buy-and-Hold investors in BROOKS experienced a maximum drawdown of -26.11% over the last three months. It returned +1.4% 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.
During the last three months BROOKS delivered losses on 62% days. However, it still managed to end this period in a profit. It's best return during this period (of +18.55%) was on Monday, 24 Dec, 2018. While it's worst loss in the same period (of -5.21%) was on Thursday, 15 Nov, 2018. There was initially a bullish trend during this period which started on 26 Oct, 2018 and went on till 5 Nov, 2018. The bullish trend returned +26.97% to investors. This was followed by a bearish trend that started on 12 Nov, 2018 and ended on 19 Nov, 2018. This bearish trend lost -14.28% of investor capital.
On monthly basis, BROOKS delivered losses in more months over the last year, than profits. BROOKS delivered profits less regularly than NIFTY-50 index. BROOKS was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -29.86% compared to -6.42% returned by NIFTY-50 index in Sep 2018. BROOKS had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from May 2018 to Jul 2018) during which period it delivered -11.5%. It is interesting to note that both BROOKS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
The stock market is filled with individuals who know the price of everything, but the value of nothing.
-- Philip Arthur Fisher
BROOKS 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 surge in BROOKS's volatility from 24 Oct, 2018 to 1 Nov, 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 BROOKS has significant negative skewness in it's return distribution. This indicates that BROOKS is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than BROOKS. Therefore, NIFTY-50 must receive a lower allocation than BROOKS in your portfolio. NIFTY-50 index usually has shorter drawdown period than BROOKS.
On a general note (since you are interested in BROOKS), ~CHEMICALS has performed really well and deserves to be closely tracked for investment opportunities.
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