HOTEL LEELA VENTURES LTD

14.75 -0.29 (-1.99%) Sell

HOTELEELA is a falling knife, continues to bleed every investor trying to catch it

13 min read

HOTELEELA significantly underperformed today. On a longer term basis, investors in HOTEL LEELA VENTURES LTD made 0.0% per day. Tuesday's performance of -1.99% was a underperformance compared to it's daily average.

[Themes containing HOTELEELA]

Buy-and-Hold investors in HOTELEELA experienced a maximum drawdown of -36.56% over the last three months. It increased by +12.17% during this strong 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.

Trend

HOTELEELA has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 5 Jan, 2016 to 22 Nov, 2018. Over the last 3 years and 1 month, HOTELEELA underperformed the NIFTY-50 index on 57% days.

During the last three months HOTELEELA delivered losses on 67% days. However, it still managed to end this period in a profit. It's best return during this period (of +19.81%) was on Tuesday, 27 Nov, 2018. While it's worst loss in the same period (of -13.04%) was on Wednesday, 21 Nov, 2018. The longest stort-term trend during this period was 9 losing days, which started on 3 Jan, 2019 and ended on 15 Jan, 2019. This bearish trend lost -6.18% of investor capital.

The last 12 months saw HOTELEELA's investors making profits in 3 months and incurring losses in 9 months. HOTELEELA was less consistent in delivering monthly returs than NIFTY-50 index. HOTELEELA significantly outperformed NIFTY-50 index in Nov 2018, when it returned +17.27% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. HOTELEELA 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 -10.52%. It is interesting to note that both HOTELEELA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

George Soros is one of the few characters from the world of finance who deserves to be called larger-than-life.
-- Gary Weiss

HOTELEELA 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 HOTELEELA's volatility from 25 Oct, 2018 to 22 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 HOTELEELA has significant negative skewness in it's return distribution. This indicates that HOTELEELA is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in HOTELEELA), if you are evaluating HOTELEELA as an investment candidate, then you should read about GMRINFRA which has delivered similar performance and can help diversify your portfolio.

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