EDUCOMP SOLUTIONS LTD

2.55 -0.05 (-1.92%) Sell

Stop-loss on the minds of EDUCOMP investors as it destroyed investor wealth

13 min read

EDUCOMP was among the worst performers today. On a longer term basis, investors in EDUCOMP SOLUTIONS LTD made -0.19% per day. Friday's performance of -1.92% was a significant underperformance compared to it's daily average.

[Themes containing EDUCOMP]

Buy-and-Hold investors in EDUCOMP experienced a maximum drawdown of -40.0% over the last three months. It lost -8.93% during this down trending period. There were both Long and Short signals during this period, while the long signals were marginally more profitable than the short signals.

Trend

EDUCOMP has been underperforming the NIFTY-50 index in recent time, after having outperformed till 12 Jan, 2016. Over the last 3 years and 1 month, EDUCOMP underperformed the NIFTY-50 index on 60% days.

During the last three months EDUCOMP was mostly loss making and delivered on average -0.1% per day. It's best return during this period (of +5.0%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -4.94%) was on Wednesday, 7 Nov, 2018. There was initially a bullish trend during this period which started on 22 Oct, 2018 and went on till 5 Nov, 2018. The bullish trend returned +42.64% to investors. This was followed by a bearish trend that started on 13 Nov, 2018 and ended on 20 Nov, 2018. This bearish trend lost -15.44% of investor capital.

EDUCOMP had 1 profitable and 11 loss making months over the last year. During the last year, EDUCOMP underperformed NIFTY-50 index on monthly return basis. EDUCOMP significantly outperformed NIFTY-50 index in Oct 2018, when it returned +63.04% compared to +4.72% returned by NIFTY-50 index during it's best month in the last one year - Nov 2018. EDUCOMP had a longer winning streak of profitable months than NIFTY-50 index. It went up in 9 straight months (from Feb 2018 to Oct 2018) during which period it delivered +63.04%.

An investment in knowledge pays the best interest.
-- Benjamin Franklin

EDUCOMP 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 surge in EDUCOMP's volatility from 22 Oct, 2018 to 20 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 EDUCOMP has positive skewness in it's return distribution. This indicates that investors can expect EDUCOMP to make attempts to recover from drawdowns quickly. Which makes EDUCOMP a good candidate for momentum based trading on short-term bullish trends or counter-trends.

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

On a general note (since you are interested in EDUCOMP), three small cap instruments that deserve special mention are ASTRAZEN, IGARASHI and RESPONIND. They have all outperformed the market and must be closely watched for investment opportunities.

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