ELGI EQUIPMENTS LTD

260.2 -4.81 (-1.85%) Buy

Search for alternative investments is on for ELGIEQUIP investors as it ranked worse than it's peers

13 min read

ELGIEQUIP has destroyed investor wealth today. On a longer term basis, investors in ELGI EQUIPMENTS LTD made +0.1% per day. Friday's performance of -1.85% was a significant underperformance compared to it's daily average.

[Themes containing ELGIEQUIP]

Buy-and-Hold investors in ELGIEQUIP experienced a maximum drawdown of -13.79% over the last three months. It returned +9.42% during this 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

ELGIEQUIP has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, ELGIEQUIP outperformed the NIFTY-50 index on 46% days. Which indicates that on days ELGIEQUIP 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 ELGIEQUIP delivered losses on 51% days. However, it still managed to end this period in a profit. It's best return during this period (of +6.68%) was on Tuesday, 18 Dec, 2018. While it's worst loss in the same period (of -4.07%) was on Tuesday, 4 Dec, 2018. There was initially a bearish trend during this period which started on 9 Nov, 2018 and went on till 20 Nov, 2018. The trend delivered -10.47% losses to investors. This was followed by a bullish trend that started on 17 Dec, 2018 and ended on 21 Dec, 2018. This bullish trend delivered +11.85% to investors.

On monthly basis, ELGIEQUIP delivered losses in more months over the last year, than profits. ELGIEQUIP delivered profits less regularly than NIFTY-50 index. ELGIEQUIP was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -18.43% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ELGIEQUIP and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both ELGIEQUIP and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Frugality includes all the other virtues.
-- Cicero

ELGIEQUIP 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 ELGIEQUIP's volatility from 19 Oct, 2018 to 14 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 ELGIEQUIP has significant negative skewness in it's return distribution. This indicates that ELGIEQUIP is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in ELGIEQUIP), three large cap instruments that deserve special mention are BAJFINANCE, TORNTPHARM and INFY. They have all outperformed the market and must be closely watched for investment opportunities.

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