EIMCO ELECON (INDIA) LTD delivered massive losses on Wednesday. It fell by -2.4% to close at 372.75. It is currently trading -28% below it's 52 week high of 523.7.
EIMCOELECO showed a bullish trend over the last 3 months. During this period EIMCOELECO increased by +5.3% and saw a maximum drawdown of -11.29%. There were 2 long signals during this period that returned a cumulative of +0.37% to investors.
EIMCOELECO has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 14 Jun, 2017 to 1 Oct, 2018. Over the last 1 year 8 months and 1 days, EIMCOELECO underperformed the NIFTY-50 index on 53% days.
During the last three months EIMCOELECO delivered losses on 54% days. However, it still managed to end this period in a profit. It's best return during this period (of +14.71%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -3.36%) was on Thursday, 25 Oct, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 6 Nov, 2018 and went on till 13 Nov, 2018. This bullish trend returned +5.45% to investors.
During the last year EIMCOELECO had 5 profitable months and 7 loss making months. EIMCOELECO returned profits in more months than NIFTY-50 index. EIMCOELECO significantly outperformed NIFTY-50 index in Oct 2018, when it returned +15.55% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. EIMCOELECO 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 +22.93%. It is interesting to note that both EIMCOELECO and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Security depends not so much upon how much you have, as upon how much you can do without.
-- Joseph Wood Krutch
EIMCOELECO is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in EIMCOELECO's volatility from 30 Oct, 2018 to 28 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 EIMCOELECO has significant negative skewness in it's return distribution. This indicates that EIMCOELECO is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than EIMCOELECO. Therefore, NIFTY-50 must receive a lower allocation than EIMCOELECO in your portfolio. NIFTY-50 index usually has shorter drawdown period than EIMCOELECO.
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