DIAMOND POWER INFRA LTD

1.35 -0.05 (-3.57%) Sell

Stop-loss on the minds of DIAPOWER investors as it delivered massive losses

13 min read

DIAMOND POWER INFRA LTD delivered massive losses today. It lost -3.57% to close at 1.35. It's recent 5 day performance has been -3.45%, +3.57%, -3.45%, +3.57% and -3.45%.

[Themes containing DIAPOWER]

DIAPOWER is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +5.68% for investors.

Trend

DIAPOWER has been underperforming the NIFTY-50 index in recent time, after having outperformed till 12 May, 2016. Over the last 3 years and 1 month, DIAPOWER underperformed the NIFTY-50 index on 59% days.

During the last three months DIAPOWER delivered losses on 54% days. However, it still managed to end this period in a profit. It's best return during this period (of +5.0%) was on Thursday, 29 Nov, 2018. While it's worst loss in the same period (of -5.0%) was on Monday, 3 Dec, 2018. There was initially a bullish trend during this period which started on 1 Nov, 2018 and went on till 29 Nov, 2018. The bullish trend returned +52.75% to investors. This was followed by a bearish trend that started on 14 Dec, 2018 and ended on 24 Dec, 2018. This bearish trend lost -21.96% of investor capital.

DIAPOWER had 2 profitable and 10 loss making months over the last year. During the last year, DIAPOWER underperformed NIFTY-50 index on monthly return basis. DIAPOWER significantly outperformed NIFTY-50 index in Nov 2018, when it returned +60.0% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. DIAPOWER 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 -173.17%. It is interesting to note that both DIAPOWER and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

A highly developed stock exchange cannot be a club for the cult of ethics.
-- Max Weber

DIAPOWER is becoming more volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant fall in DIAPOWER's volatility from 23 Oct, 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 DIAPOWER has significant negative skewness in it's return distribution. This indicates that DIAPOWER is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in DIAPOWER you may find it interesting to know that CUB has shown remarkable performance this year and deserves to be on every investors' watchlist.

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