BURNPUR CEMENT LTD.

3.75 0.0 (0.0%) Sell

BURNPUR shows sign of weakness as investors do cost averaging

13 min read

BURNPUR CEMENT LTD. performed better than the broader market on Tuesday. It returned 0.0% to close at 3.75. On a day when the overall market breadth was 70%, it closed higher than 20% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0036%.

[Themes containing BURNPUR]

Buy-and-Hold investors in BURNPUR experienced a maximum drawdown of -20.21% over the last three months. It returned +1.35% 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. The net profit from Long signals was +0.3%.

Trend

BURNPUR has been underperforming the NIFTY-50 index in recent time, after having outperformed till 5 Oct, 2016. Over the last 3 years and 1 month, BURNPUR underperformed the NIFTY-50 index on 57% days.

During the last three months BURNPUR delivered losses on 59% days. However, it still managed to end this period in a profit. It's best return during this period (of +6.25%) was on Friday, 14 Dec, 2018. While it's worst loss in the same period (of -4.82%) was on Monday, 26 Nov, 2018. There was initially a bullish trend during this period which started on 1 Nov, 2018 and went on till 7 Nov, 2018. The bullish trend returned +21.72% to investors. This was followed by a bearish trend that started on 20 Nov, 2018 and ended on 26 Nov, 2018. This bearish trend lost -12.78% of investor capital.

On monthly basis, BURNPUR delivered losses in more months over the last year, than profits. BURNPUR delivered profits less regularly than NIFTY-50 index. BURNPUR was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -30.26% compared to -6.42% returned by NIFTY-50 index in Sep 2018. BURNPUR had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from Feb 2018 to Jul 2018) during which period it delivered -80.57%. It is interesting to note that both BURNPUR and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

The difference between playing the stock market and the horses is that one of the horses must win.
-- Joey Adams

BURNPUR 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 BURNPUR's volatility from 7 Nov, 2018 to 26 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 BURNPUR has significant negative skewness in it's return distribution. This indicates that BURNPUR is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in BURNPUR you may find it interesting to know that NIFTY-GS-15YRPLUS 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