120.3 +1.31 (+1.09%) Buy

Joy for EMMBI investors as it ranks better than it's peers but, has not managed to breakout

13 min read

EMMBI showed marginal outperformance today. On a longer term basis, investors in EMMBI INDUSTRIES LIMITED made +0.26% per day. Wednesday's performance of +1.09% was a outperformance compared to it's daily average.

[Themes containing EMMBI]

Buy-and-Hold investors in EMMBI experienced a maximum drawdown of -17.43% over the last three months. It delivered +0.5% during this flat trending period. There were both Long and Short signals during this period, while the long signals were marginally more profitable than the short signals.


EMMBI has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 26 Feb, 2016 to 6 Oct, 2017. Over the last 3 years and 1 month, EMMBI outperformed the NIFTY-50 index on 46% days. Which indicates that on days EMMBI 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 EMMBI delivered losses on 56% days. However, it still managed to end this period in a profit. It's best return during this period (of +9.34%) was on Wednesday, 19 Dec, 2018. While it's worst loss in the same period (of -5.54%) was on Thursday, 29 Nov, 2018. The longest stort-term trend during this period was 8 losing days, which started on 20 Nov, 2018 and ended on 30 Nov, 2018. This bearish trend lost -14.48% of investor capital.

The last 12 months saw EMMBI's investors making profits in 4 months and incurring losses in 8 months. During the last year, EMMBI and NIFTY-50 index had the same number of profitable months. EMMBI was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -22.12% compared to -6.42% returned by NIFTY-50 index in Sep 2018. EMMBI had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Mar 2018 to Jun 2018) during which period it delivered -32.84%. It is interesting to note that both EMMBI and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Some of the people in finance touch enormous parts of the economy.
-- Stephen A. Schwarzman

EMMBI 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 EMMBI's volatility from 25 Oct, 2018 to 17 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 EMMBI has significant negative skewness in it's return distribution. This indicates that EMMBI is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in EMMBI you may find it interesting to know that BAJFINANCE is a large cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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