IOL CHEM AND PHARMA LTD underperformed on Wednesday. It lost -0.92% to close at 215.6. On a day when the overall market breadth was 70%, it closed higher than 88% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0084%.
IOLCP showed a strong up trend over the last 3 months. During this period IOLCP grew by +78.03% and saw a maximum drawdown of -15.21%. There were 2 long signals during this period that returned a cumulative of +58.11% to investors.
IOLCP has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, IOLCP outperformed the NIFTY-50 index on 48% days. Which indicates that on days IOLCP 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 IOLCP was mostly profitable and delivered on average +0.98% per day. It's best return during this period (of +9.9%) was on Thursday, 15 Nov, 2018. While it's worst loss in the same period (of -5.55%) was on Monday, 10 Dec, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 9 Nov, 2018. The bullish trend returned +29.32% to investors. This was followed by a bearish trend that started on 20 Nov, 2018 and ended on 26 Nov, 2018. This bearish trend lost -8.73% of investor capital.
IOLCP had 8 profitable and 4 loss making months over the last year. IOLCP was profitable in more months than NIFTY-50 index. IOLCP significantly outperformed NIFTY-50 index in Nov 2018, when it returned +32.24% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. IOLCP had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered +32.55%. It is interesting to note that both IOLCP and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Courage is being scared to death, but saddling up anyway.
-- John Wayne
IOLCP 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 IOLCP's volatility from 24 Oct, 2018 to 1 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 IOLCP has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.
NIFTY-50 index has more chance of extreme outcomes than IOLCP. Therefore, NIFTY-50 must receive a lower allocation than IOLCP in your portfolio. NIFTY-50 index usually has shorter drawdown period than IOLCP.
On a general note (since you are interested in IOLCP), three instruments that deserve special mention are HATSUN, CUB and RESPONIND. They have all outperformed the market and must be closely watched for investment opportunities.
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