ELECON ENG. CO. LTD performed better than the broader market on Wednesday. It returned +0.37% to close at 67.45. On a day when the overall market breadth was 70%, it closed higher than 57% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0084%.
Buy-and-Hold investors in ELECON experienced a maximum drawdown of -14.03% over the last three months. It returned +34.63% during this strong up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +17.37%.
ELECON has been underperforming the NIFTY-50 index in recent time, after having outperformed till 20 Dec, 2017. Over the last 3 years and 1 month, ELECON underperformed the NIFTY-50 index on 55% days.
During the last three months ELECON delivered losses on 54% days. However, it still managed to end this period in a profit. It's best return during this period (of +16.74%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -5.83%) was on Friday, 2 Nov, 2018. There was initially a bullish trend during this period which started on 26 Oct, 2018 and went on till 1 Nov, 2018. The bullish trend returned +25.83% to investors. This was followed by a bearish trend that started on 15 Jan, 2019 and ended on 22 Jan, 2019. This bearish trend lost -7.87% of investor capital.
On monthly basis, ELECON delivered profits and losses in equal number of months. ELECON delivered profits in more months than NIFTY-50 index. ELECON significantly outperformed NIFTY-50 index in Dec 2018, when it returned +21.6% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. ELECON 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 +31.69%. It is interesting to note that both ELECON and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
The difference between succeeding and failing is consistency.
-- Don Connelly
ELECON 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 ELECON's volatility from 24 Oct, 2018 to 1 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 ELECON has significant negative skewness in it's return distribution. This indicates that ELECON is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than ELECON. Therefore, NIFTY-50 must receive a lower allocation than ELECON in your portfolio. NIFTY-50 index usually has shorter drawdown period than ELECON.
On a general note (since you are interested in ELECON), RESPONIND has performed really well this year and deserves to be closely tracked for investment opportunities.
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