FORTIS HEALTHCARE LTD showed weakness on Friday. It fell by -0.77% to close at 135.5. It is currently trading -17% below it's 52 week high of 163.3.
Buy-and-Hold investors in FORTIS experienced a maximum drawdown of -12.23% over the last three months. It surged by +3.2% during this bullish 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 +0.78%.
FORTIS has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 2 May, 2017 to 6 Feb, 2018. Over the last 3 years and 1 month, FORTIS underperformed the NIFTY-50 index on 52% days.
FORTIS returned losses on 58% days in the last three months. During this time, it delivered on average +0.06% per day. It delivered it's worst daily return of -6.7%, during this period, on Friday, 14 Dec, 2018. The longest stort-term trend during this period was 6 losing days, which started on 11 Jan, 2019 and ended on 18 Jan, 2019. This bearish trend lost -3.22% of investor capital.
During the last year FORTIS had 6 profitable months and 6 loss making months. FORTIS returned profits in more months than NIFTY-50 index. FORTIS was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -22.81% compared to -6.42% returned by NIFTY-50 index in Sep 2018. FORTIS and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both FORTIS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
There's more honor in investment management than in investment banking.
-- Charlie Munger
FORTIS 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 surge in FORTIS's volatility from 7 Dec, 2018 to 17 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 FORTIS has significant negative skewness in it's return distribution. This indicates that FORTIS is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than FORTIS. Therefore, NIFTY-50 must receive a lower allocation than FORTIS in your portfolio. NIFTY-50 index usually has shorter drawdown period than FORTIS.
Based on your interest in FORTIS you may find it interesting to know that BATAINDIA is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.
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