ELECTROSTEEL CASTINGS LTD

21.3 -0.05 (-0.23%) Buy

ELECTCAST investors doing a reality check

13 min read

ELECTROSTEEL CASTINGS LTD ranked worse than it's peers on Tuesday. It lost -0.23% to close at 21.3. It is currently trading -43% below it's 52 week high of 37.85.

[Themes containing ELECTCAST]

Buy-and-Hold investors in ELECTCAST experienced a maximum drawdown of -10.62% over the last three months. It grew by +11.23% 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.

Trend

ELECTCAST has been underperforming the NIFTY-50 index in recent time, after having outperformed till 3 Jan, 2018. Over the last 3 years and 1 month, ELECTCAST underperformed the NIFTY-50 index on 54% days.

During the last three months ELECTCAST delivered losses on 51% days. However, it still managed to end this period in a profit. It's best return during this period (of +6.02%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -4.1%) was on Thursday, 6 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 -6.44% losses to investors. This was followed by a bullish trend that started on 22 Nov, 2018 and ended on 30 Nov, 2018. This bullish trend delivered +8.11% to investors.

ELECTCAST had 4 profitable and 8 loss making months over the last year. During the last year, ELECTCAST underperformed NIFTY-50 index on monthly return basis. ELECTCAST was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -21.84% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ELECTCAST and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both ELECTCAST and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

The difference between playing the stock market and the horses is that one of the horses must win.
-- Joey Adams

ELECTCAST 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 fall in ELECTCAST's volatility from 23 Oct, 2018 to 10 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 ELECTCAST has significant negative skewness in it's return distribution. This indicates that ELECTCAST is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in ELECTCAST you may find it interesting to know that HATSUN has shown remarkable performance this year and deserves to be on every investors' watchlist.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter