INDIAN METALS & FERRO performed better than the broader market today. It returned +0.5% to close at 232.5. It's recent 5 day performance has been -1.15%, -2.15%, +0.4%, +0.02% and +1.49%.
IMFA is currently in a down trend. Over the last three months 3 bearish signals have generated a profit of +2.25% for investors.
IMFA has been underperforming the NIFTY-50 index in recent time, after having outperformed till 27 Mar, 2017. Over the last 3 years and 1 month, IMFA outperformed the NIFTY-50 index on 44% days. Which indicates that on days IMFA 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 IMFA was mostly loss making and delivered on average -0.24% per day. It's best return during this period (of +4.15%) was on Wednesday, 12 Dec, 2018. While it's worst loss in the same period (of -4.21%) was on Monday, 10 Dec, 2018. There was initially a bearish trend during this period which started on 15 Nov, 2018 and went on till 30 Nov, 2018. The trend delivered -9.04% losses to investors. This was followed by a bullish trend that started on 11 Dec, 2018 and ended on 14 Dec, 2018. This bullish trend delivered +9.46% to investors.
On monthly basis, IMFA delivered losses in more months over the last year, than profits. IMFA delivered profits less regularly than NIFTY-50 index. IMFA was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -29.06% compared to -6.42% returned by NIFTY-50 index in Sep 2018. IMFA had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Sep 2018 to Nov 2018) during which period it delivered -23.75%. It is interesting to note that both IMFA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
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IMFA 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 IMFA's volatility from 23 Oct, 2018 to 13 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 IMFA has significant negative skewness in it's return distribution. This indicates that IMFA is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than IMFA. Therefore, NIFTY-50 must receive a lower allocation than IMFA in your portfolio. NIFTY-50 index usually has shorter drawdown period than IMFA.
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