119.35 -6.25 (-5.24%) Buy

Search for alternative investments is on for HINDOILEXP investors as it ranked worse than it's peers

13 min read

HINDUSTAN OIL EXPLORATION delivered massive losses today. It delivered -5.24% to close at 119.35. During the last week it delivered -4.82% and saw a maximum drawdown of -9.31% before bouncing back.

[Themes containing HINDOILEXP]

Buy-and-Hold investors in HINDOILEXP experienced a maximum drawdown of -14.99% over the last three months. It delivered -10.67% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.


HINDOILEXP has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 2 Mar, 2016 to 9 Aug, 2018. Over the last 3 years and 1 month, HINDOILEXP outperformed the NIFTY-50 index on 47% days. Which indicates that on days HINDOILEXP 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 HINDOILEXP was mostly loss making and delivered on average -0.16% per day. It's best return during this period (of +5.29%) was on Wednesday, 16 Jan, 2019. While it's worst loss in the same period (of -5.24%) was on Tuesday, 22 Jan, 2019. The longest stort-term trend during this period was 7 losing days, which started on 13 Nov, 2018 and ended on 21 Nov, 2018. This bearish trend lost -11.37% of investor capital.

The last 12 months saw HINDOILEXP's investors making profits in 7 months and incurring losses in 5 months. During the last year, HINDOILEXP delivered profits in more months than NIFTY-50 index. HINDOILEXP was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -18.31% compared to -6.42% returned by NIFTY-50 index in Sep 2018. HINDOILEXP had a longer winning streak of profitable months than NIFTY-50 index. It went up in 5 straight months (from Apr 2018 to Aug 2018) during which period it delivered +31.34%. It is interesting to note that both HINDOILEXP and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it.
-- Peter Lynch.

HINDOILEXP is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in HINDOILEXP's volatility from 23 Oct, 2018 to 8 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 HINDOILEXP has significant negative skewness in it's return distribution. This indicates that HINDOILEXP is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in HINDOILEXP), two instruments that deserve special mention are SPLIL and MERCK. They have significantly outperformed the overall market this year.

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