HERITGFOOD shows sign of weakness as investors do cost averaging

HERITAGE FOODS LTD ranked better than it's peers on Friday. It delivered +0.42% to close at 536.7. On a day when the overall market breadth was 71%, it closed higher than 79% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

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Buy-and-Hold investors in HERITGFOOD experienced a maximum drawdown of -11.98% over the last three months. It delivered +9.79% 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.

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HERITGFOOD has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 19 Jul, 2016 to 21 Dec, 2017. Over the last 3 years and 1 month, HERITGFOOD outperformed the NIFTY-50 index on 47% days. Which indicates that on days HERITGFOOD 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 HERITGFOOD was mostly profitable and delivered on average +0.19% per day. It's best return during this period (of +9.72%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -5.58%) was on Monday, 22 Oct, 2018. The longest stort-term trend during this period was 5 losing days, which started on 30 Nov, 2018 and ended on 6 Dec, 2018. This bearish trend lost -6.47% of investor capital.

The last 12 months saw HERITGFOOD's investors making profits in 8 months and incurring losses in 4 months. During the last year, HERITGFOOD delivered profits in more months than NIFTY-50 index. HERITGFOOD was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -17.64% compared to -6.42% returned by NIFTY-50 index in Sep 2018. HERITGFOOD had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Mar 2018 to May 2018) during which period it delivered +4.68%. It is interesting to note that both HERITGFOOD and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

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HERITGFOOD 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 HERITGFOOD's volatility from 19 Oct, 2018 to 30 Nov, 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 HERITGFOOD has significant negative skewness in it's return distribution. This indicates that HERITGFOOD is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in HERITGFOOD you may find it interesting to know that LTI and CUB are both mid caps that have shown remarkable performance and deserve to be on every investors' watchlist.