EDELWEISS FIN SERV LTD

165.8 -2.17 (-1.31%) Sell

Want to invest in EDELWEISS? Wait as it performed worse than the broader market

13 min read

EDELWEISS FIN SERV LTD performed worse than the broader market today. It returned -1.31% to close at 165.8. It's recent 5 day performance has been -2.97%, -0.86%, -1.69%, +0.11% and -1.09%.

[Themes containing EDELWEISS]

EDELWEISS showed a up trend over the last 3 months. During this period EDELWEISS returned +8.33% and saw a maximum drawdown of -17.53%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in EDELWEISS till volatility reduces and a clear trend emerges.

Trend

EDELWEISS has been underperforming the NIFTY-50 index in recent time, after having outperformed till 29 May, 2018. Over the last 3 years and 1 month, EDELWEISS outperformed the NIFTY-50 index on 48% days. Which indicates that on days EDELWEISS outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

During the last three months EDELWEISS delivered losses on 53% days. However, it still managed to end this period in a profit. It's best return during this period (of +5.0%) was on Tuesday, 4 Dec, 2018. While it's worst loss in the same period (of -6.49%) was on Monday, 10 Dec, 2018. There was initially a bearish trend during this period which started on 22 Oct, 2018 and went on till 25 Oct, 2018. The trend delivered -13.11% losses to investors. This was followed by a bullish trend that started on 26 Oct, 2018 and ended on 2 Nov, 2018. This bullish trend delivered +27.02% to investors.

On monthly basis, EDELWEISS delivered losses in more months over the last year, than profits. EDELWEISS delivered profits less regularly than NIFTY-50 index. EDELWEISS was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -32.38% compared to -6.42% returned by NIFTY-50 index in Sep 2018. EDELWEISS had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -54.87%. It is interesting to note that both EDELWEISS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

If you do chose to invest in a share, invest for the lifetime.
-- Sandeep Sahajpal

EDELWEISS is becoming less 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 EDELWEISS's volatility from 19 Oct, 2018 to 14 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 EDELWEISS has significant negative skewness in it's return distribution. This indicates that EDELWEISS is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in EDELWEISS), BAJFINANCE is a large cap that deserves to be closely tracked for investment opportunities.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
If you liked what you read here ...

... 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
Share with friends   WhatsApp   Facebook   Twitter