ESSAR SHIPPING LTD

13.1 -0.2 (-1.5%) Buy

Stop-loss on the minds of ESSARSHPNG investors as it shows weakness

17 min read

ESSARSHPNG is a falling knife that can bleed you if you catch it today. On a longer term basis, investors in ESSAR SHIPPING LTD made -0.01% per day. Friday's performance of -1.5% was a significant underperformance compared to it's daily average.

[Themes containing ESSARSHPNG]

Buy-and-Hold investors in ESSARSHPNG experienced a maximum drawdown of -11.47% over the last three months. It lost -1.13% during this down trending period. There were both Long and Short signals during this period, where the short signals were marginally more profitable than the long signals.

Trend

ESSARSHPNG has been underperforming the NIFTY-50 index in recent time, after having outperformed till 8 Jan, 2016. Over the last 3 years and 1 month, ESSARSHPNG underperformed the NIFTY-50 index on 58% days.

During the last three months ESSARSHPNG was mostly loss making and delivered on average 0.0% per day. It's best return during this period (of +5.16%) was on Monday, 3 Dec, 2018. While it's worst loss in the same period (of -6.81%) was on Thursday, 1 Nov, 2018. There was initially a bullish trend during this period which started on 5 Nov, 2018 and went on till 13 Nov, 2018. The bullish trend returned +5.03% to investors. This was followed by a bearish trend that started on 14 Nov, 2018 and ended on 16 Nov, 2018. This bearish trend lost -3.0% of investor capital.

ESSARSHPNG had 3 profitable and 9 loss making months over the last year. During the last year, ESSARSHPNG underperformed NIFTY-50 index on monthly return basis. ESSARSHPNG was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -20.63% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ESSARSHPNG had a longer winning streak of losing months than NIFTY-50 index. It went down in 8 straight months (from Feb 2018 to Sep 2018) during which period it delivered -77.83%. It is interesting to note that both ESSARSHPNG and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

It's not the employer who pays the wages. Employers only handle the money. It's the customer who pays the wages.
-- Henry Ford

ESSARSHPNG 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 ESSARSHPNG's volatility from 23 Oct, 2018 to 1 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 ESSARSHPNG has significant negative skewness in it's return distribution. This indicates that ESSARSHPNG is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in ESSARSHPNG), two instruments that have delivered similar performance as ESSARSHPNG are ROLTA and HATHWAY. They are suitable as good alternative investment candidates that can diversify your portfolio.

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