DELTACORP investors herd to book profits while the going is good
18 Jan, 201913 min read
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DELTA CORP LIMITED delivered massive losses today. It delivered -1.62% to close at 246.65. During the last week it delivered -3.58% and saw a maximum drawdown of -3.97% before bouncing back.
DELTACORP is currently in a bullish trend. Over the last three months Buy-and-Hold has been a better strategy (returning +9.74%) for DELTACORP's investors than trading long signals.
DELTACORP 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 23 Jan, 2018. Over the last 3 years and 1 month, DELTACORP outperformed the NIFTY-50 index on 49% days. Which indicates that on days DELTACORP outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
DELTACORP was profitable on 50% days in the last three months. During this time, it delivered on average +0.17% per day. It delivered it's best daily return of +5.04%, during this period, on Tuesday, 18 Dec, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 26 Oct, 2018 and went on till 2 Nov, 2018. This bullish trend returned +15.68% to investors.
The last 12 months saw DELTACORP's investors making profits in 7 months and incurring losses in 5 months. During the last year, DELTACORP delivered profits in more months than NIFTY-50 index. DELTACORP was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -27.98% compared to -6.42% returned by NIFTY-50 index in Sep 2018. DELTACORP had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered +18.39%. It is interesting to note that both DELTACORP and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Finance, like time, devours its own children.
-- Honore de Balzac
DELTACORP 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 DELTACORP's volatility from 23 Oct, 2018 to 7 Dec, 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 DELTACORP has significant negative skewness in it's return distribution. This indicates that DELTACORP is very risky for short-term investment and can significantly underperform for long durations.
DELTACORP has more chance of extreme outcomes than the NIFTY-50 index. Therefore, DELTACORP must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than DELTACORP.
Based on your interest in DELTACORP you may find it interesting to know that CUB is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.
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