DEEPAK FERTILIZERS & PETR significantly underperformed on Friday. It fell by -2.67% to close at 143.95. On a day when the overall market breadth was 71%, it closed higher than 40% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.13%.
Buy-and-Hold investors in DEEPAKFERT experienced a maximum drawdown of -43.69% over the last three months. It fell by -40.33% during this strong 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. The net profit from Short signals was +32.31%.
DEEPAKFERT has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 2 Nov, 2017 to 10 Dec, 2018. Over the last 2 years 11 months and 13 days, DEEPAKFERT underperformed the NIFTY-50 index on 54% days.
During the last three months DEEPAKFERT was mostly loss making and delivered on average -0.81% per day. It's best return during this period (of +9.55%) was on Thursday, 22 Nov, 2018. While it's worst loss in the same period (of -7.17%) was on Wednesday, 14 Nov, 2018. The longest stort-term trend during this period was 7 losing days, which started on 19 Sep, 2018 and ended on 28 Sep, 2018. This bearish trend lost -23.54% of investor capital.
During the last year DEEPAKFERT had 3 profitable months and 9 loss making months. DEEPAKFERT returned profits in fewer months than NIFTY-50 index. DEEPAKFERT was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -22.09% compared to -6.42% returned by NIFTY-50 index in Sep 2018. DEEPAKFERT had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Jan 2018 to Mar 2018) during which period it delivered -35.6%. It is interesting to note that both DEEPAKFERT and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Average investors who try to do a lot of trading will only make their brokers rich.
-- Michael Jenson
DEEPAKFERT is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in DEEPAKFERT's volatility from 21 Sep, 2018 to 13 Nov, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 21 Sep, 2018 to 5 Dec, 2018.
Advanced/professional short-term investors should note that DEEPAKFERT has significant negative skewness in it's return distribution. This indicates that DEEPAKFERT is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than DEEPAKFERT. Therefore, NIFTY-50 must receive a lower allocation than DEEPAKFERT in your portfolio. NIFTY-50 index usually has shorter drawdown period than DEEPAKFERT.
Based on your interest in DEEPAKFERT you may find it interesting to know that LTTS, AARTIIND and LTI are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.
... 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