347.05 -8.58 (-2.47%) Buy

Waiting to invest in CADILAHC? Look for alternatives because it ranked worse than it's peers

13 min read

CADILAHC ranked among the worst performers today. On a longer term basis, investors in CADILA HEALTHCARE LIMITED made +0.07% per day. Friday's performance of -2.47% was a underperformance compared to it's daily average.

[Themes containing CADILAHC]

CADILAHC showed a bearish trend over the last 3 months. During this period CADILAHC delivered -6.64% and saw a maximum drawdown of -10.62%. There were 2 short signals during this period that returned a cumulative of +1.78% to investors.


CADILAHC has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 12 Jun, 2017 to 14 Aug, 2018. Over the last 3 years and 1 month, CADILAHC underperformed the NIFTY-50 index on 50% days. Which indicates that on days CADILAHC underperforms the NIFTY-50 index, it's performance is marginally worse than on the days it outperforms the NIFTY-50 index.

During the last three months CADILAHC was mostly loss making and delivered on average -0.09% per day. It's best return during this period (of +4.48%) was on Wednesday, 14 Nov, 2018. While it's worst loss in the same period (of -5.26%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 4 losing days, which started on 22 Nov, 2018 and ended on 28 Nov, 2018. This bearish trend lost -4.17% of investor capital.

The last 12 months saw CADILAHC's investors making profits in 4 months and incurring losses in 8 months. CADILAHC was less consistent in delivering monthly returs than NIFTY-50 index. CADILAHC was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -12.49% compared to -6.42% returned by NIFTY-50 index in Sep 2018. CADILAHC and NIFTY-50 index, both had periods of 2 consecutive losing months. It is interesting to note that both CADILAHC and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

If we command our wealth, we shall be rich and free. If our wealth commands us, we are poor indeed.
-- Edmund Burke

CADILAHC 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 CADILAHC's volatility from 24 Oct, 2018 to 1 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 CADILAHC has significant negative skewness in it's return distribution. This indicates that CADILAHC is very risky for short-term investment and can significantly underperform for long durations.

Investors trading in CADILAHC derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in CADILAHC you may find it interesting to know that LTI and LTTS are both mid caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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