DATAMATICS GLOBAL SER LTD was among the worst performers on Friday. It delivered -1.42% to close at 107.6. On a day when the overall market breadth was 71%, it closed higher than 76% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.
Buy-and-Hold investors in DATAMATICS experienced a maximum drawdown of -15.92% over the last three months. It delivered -5.78% 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.
DATAMATICS has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 29 Feb, 2016 to 20 Jan, 2017. Over the last 3 years and 1 month, DATAMATICS outperformed the NIFTY-50 index on 43% days. Which indicates that on days DATAMATICS outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
DATAMATICS returned losses on 62% days in the last three months. During this time, it delivered on average -0.07% per day. It delivered it's best daily return of +6.35%, during this period, on Tuesday, 1 Jan, 2019. The longest stort-term trend during this period was 5 losing days, which started on 4 Dec, 2018 and ended on 10 Dec, 2018. This bearish trend lost -7.4% of investor capital.
The last 12 months saw DATAMATICS's investors making profits in 5 months and incurring losses in 7 months. During the last year, DATAMATICS and NIFTY-50 index had the same number of profitable months. DATAMATICS significantly outperformed NIFTY-50 index in Aug 2018, when it returned +36.01% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. DATAMATICS 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 -20.25%. It is interesting to note that both DATAMATICS 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.
-- Phillip Fisher
DATAMATICS 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 DATAMATICS's volatility from 12 Nov, 2018 to 18 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 DATAMATICS has significant negative skewness in it's return distribution. This indicates that DATAMATICS is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than DATAMATICS. Therefore, NIFTY-50 must receive a lower allocation than DATAMATICS in your portfolio. NIFTY-50 index usually has shorter drawdown period than DATAMATICS.
Based on your interest in DATAMATICS you may find it interesting to know that LTTS, BATAINDIA and CUB are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.
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