HARRISON MALAYALAM LTD

80.45 -1.09 (-1.35%) Sell

HARRMALAYA continues its fall as more investors loose confidence

13 min read

HARRISON MALAYALAM LTD delivered lacklustre performance on Friday. It returned -1.35% to close at 80.45. It is currently trading -32% below it's 52 week high of 119.75.

[Themes containing HARRMALAYA]

HARRMALAYA is currently in a down trend. Over the last three months trading short signals has not been a profitable strategy for HARRMALAYA's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -7.42%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to HARRMALAYA.

Trend

HARRMALAYA has been underperforming the NIFTY-50 index in recent time, after having outperformed till 30 Nov, 2017. Over the last 3 years and 1 month, HARRMALAYA underperformed the NIFTY-50 index on 57% days.

During the last three months HARRMALAYA was mostly loss making and delivered on average -0.11% per day. It's best return during this period (of +4.29%) was on Monday, 5 Nov, 2018. While it's worst loss in the same period (of -3.87%) was on Wednesday, 14 Nov, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 5 Nov, 2018. The bullish trend returned +11.21% to investors. This was followed by a bearish trend that started on 4 Dec, 2018 and ended on 10 Dec, 2018. This bearish trend lost -2.68% of investor capital.

On monthly basis, HARRMALAYA delivered losses in more months over the last year, than profits. HARRMALAYA delivered profits less regularly than NIFTY-50 index. HARRMALAYA significantly outperformed NIFTY-50 index in Apr 2018, when it returned +46.35% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. HARRMALAYA had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from May 2018 to Jul 2018) during which period it delivered -19.33%. It is interesting to note that both HARRMALAYA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Happiness is not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort.
-- Franklin D. Roosevelt

HARRMALAYA 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 HARRMALAYA'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 HARRMALAYA has significant negative skewness in it's return distribution. This indicates that HARRMALAYA is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in HARRMALAYA), CUB is a mid cap that deserves to be closely tracked for investment opportunities.

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