Prayers for EKC investors as it delivered massive losses

EKC is a falling knife that can bleed you if you catch it today. On a longer term basis, investors in EVEREST KANTO CYLINDERLTD made +0.13% per day. Tuesday's performance of -4.25% was a underperformance compared to it's daily average.

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Buy-and-Hold investors in EKC experienced a maximum drawdown of -24.64% over the last three months. It delivered +5.37% during this bullish trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.

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EKC has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 8 Jun, 2016 to 11 Dec, 2017. Over the last 3 years and 1 month, EKC outperformed the NIFTY-50 index on 42% days. Which indicates that on days EKC 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 EKC delivered losses on 64% days. However, it still managed to end this period in a profit. It's best return during this period (of +20.0%) was on Tuesday, 18 Dec, 2018. While it's worst loss in the same period (of -7.79%) was on Thursday, 15 Nov, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 10 Dec, 2018 and went on till 18 Dec, 2018. This bullish trend returned +34.47% to investors.

The last 12 months saw EKC's investors making profits in 4 months and incurring losses in 8 months. EKC was less consistent in delivering monthly returs than NIFTY-50 index. EKC was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -27.03% compared to -6.42% returned by NIFTY-50 index in Sep 2018. EKC had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from May 2018 to Sep 2018) during which period it delivered -51.69%. It is interesting to note that both EKC and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"I finally know what distinguishes man from the other beasts: financial worries.

EKC is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in EKC's volatility from 31 Oct, 2018 to 6 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 EKC has significant negative skewness in it's return distribution. This indicates that EKC is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in EKC), three instruments that are extremely volatile are IGARASHI, ~HOMEAPPLIANCES and IEX. They must all be evaluated prudently and investors are better off avoiding them at the moment.