Search for alternative investments is on for HSIL investors as it shows weakness

HSIL LIMITED has destroyed investor wealth on Friday. It lost -2.29% to close at 236.95. It is currently trading -51% below it's 52 week high of 487.25.

[Themes containing HSIL]

HSIL is currently in a up trend. The previous long signal in HSIL has not been profitable for investors in general. If you are invested in HSIL at current levels please make sure that your allocation is limited and that your portfolio is well diversified.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

HSIL has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, HSIL underperformed the NIFTY-50 index on 56% days.

During the last three months HSIL was mostly loss making and delivered on average -0.07% per day. It's best return during this period (of +5.88%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -5.86%) was on Thursday, 17 Jan, 2019. There was initially a bullish trend during this period which started on 31 Oct, 2018 and went on till 6 Nov, 2018. The bullish trend returned +16.76% to investors. This was followed by a bearish trend that started on 7 Nov, 2018 and ended on 21 Nov, 2018. This bearish trend lost -18.36% of investor capital.

HSIL had 3 profitable and 9 loss making months over the last year. During the last year, HSIL underperformed NIFTY-50 index on monthly return basis. HSIL was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -19.75% compared to -6.42% returned by NIFTY-50 index in Sep 2018. HSIL had a longer winning streak of losing months than NIFTY-50 index. It went down in 9 straight months (from Mar 2018 to Nov 2018) during which period it delivered -70.51%. It is interesting to note that both HSIL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Frugality includes all the other virtues.
-- Cicero

HSIL is becoming more 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 HSIL's volatility from 1 Nov, 2018 to 11 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 HSIL has significant negative skewness in it's return distribution. This indicates that HSIL is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in HSIL), two instruments that have been extremely volatile in recent times are NIFTY50-DIV-POINT and HATSUN. Investors in these instruments should consider reducing their exposure (to NIFTY50-DIV-POINT and HATSUN) and diversifying their portfolios.