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%.
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%.
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.
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