Stop-loss on the minds of EIDPARRY investors as it ranked among the worst performers
18 Jan, 201914 min read
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EID PARRY INDIA LTD significantly underperformed on Friday. It lost -4.07% to close at 213.35. It is currently trading -42% below it's 52 week high of 371.65.
EIDPARRY is currently in a down trend. Over the last three months Buy-and-Hold has been a better strategy (returning +6.78%) for EIDPARRY's investors than shorting it.
EIDPARRY has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, EIDPARRY underperformed the NIFTY-50 index on 54% days.
During the last three months EIDPARRY delivered losses on 56% days. However, it still managed to end this period in a profit. It's best return during this period (of +6.05%) was on Wednesday, 24 Oct, 2018. While it's worst loss in the same period (of -4.08%) was on Wednesday, 5 Dec, 2018. There was initially a bearish trend during this period which started on 13 Nov, 2018 and went on till 16 Nov, 2018. The trend delivered -7.11% losses to investors. This was followed by a bullish trend that started on 3 Jan, 2019 and ended on 10 Jan, 2019. This bullish trend delivered +8.92% to investors.
EIDPARRY had 4 profitable and 8 loss making months over the last year. During the last year, EIDPARRY underperformed NIFTY-50 index on monthly return basis. EIDPARRY was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -13.85% compared to -6.42% returned by NIFTY-50 index in Sep 2018. EIDPARRY had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Feb 2018 to May 2018) during which period it delivered -34.36%. It is interesting to note that both EIDPARRY and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Formal education will make you a living; self-education will make you a fortune.
-- Jim Rohn
EIDPARRY 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 EIDPARRY's volatility from 19 Oct, 2018 to 3 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 EIDPARRY has significant negative skewness in it's return distribution. This indicates that EIDPARRY is very risky for short-term investment and can significantly underperform for long durations.
EIDPARRY has more chance of extreme outcomes than the NIFTY-50 index. Therefore, EIDPARRY must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than EIDPARRY.
On a general note (since you are interested in EIDPARRY), two instruments that have delivered similar performance as EIDPARRY are SOBHA and SIS. They are suitable as good alternative investment candidates that can diversify your portfolio.
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