Stop-loss on the minds of JAIBALAJI investors as it performed worse than the broader market

JAIBALAJI underperformed broader market today. On a longer term basis, investors in JAI BALAJI INDUSTRIES LTD made +0.05% per day. Tuesday's performance of -0.28% was a underperformance compared to it's daily average.

[Themes containing JAIBALAJI]

Buy-and-Hold investors in JAIBALAJI experienced a maximum drawdown of -17.06% over the last three months. It delivered +8.79% during this 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

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

JAIBALAJI has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 11 Apr, 2017 to 29 Jun, 2018. Over the last 3 years and 1 month, JAIBALAJI outperformed the NIFTY-50 index on 48% days. Which indicates that on days JAIBALAJI 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 JAIBALAJI delivered losses on 53% days. However, it still managed to end this period in a profit. It's best return during this period (of +4.86%) was on Thursday, 20 Dec, 2018. While it's worst loss in the same period (of -4.85%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 9 profitable days, which started on 11 Dec, 2018 and went on till 21 Dec, 2018. This bullish trend returned +28.24% to investors.

The last 12 months saw JAIBALAJI's investors making profits in 8 months and incurring losses in 4 months. During the last year, JAIBALAJI delivered profits in more months than NIFTY-50 index. JAIBALAJI significantly outperformed NIFTY-50 index in Sep 2018, when it returned +75.81% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. JAIBALAJI had a longer winning streak of profitable months than NIFTY-50 index. It went up in 7 straight months (from Jul 2018 to Jan 2019) during which period it delivered +110.0%. It is interesting to note that both JAIBALAJI and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

I think that stocks have been this tremendous, tremendous equalizer for people in this country. Guys who can't make a lot of money at their jobs have been able to make a lot of money in the stock market.
-- Jim Cramer

JAIBALAJI 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 JAIBALAJI's volatility from 23 Oct, 2018 to 2 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 JAIBALAJI 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.

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

On a general note (since you are interested in JAIBALAJI), three instruments that deserve special mention are ~MUTHOOTGRP, BAJFINANCE and ~CHEMICALS. They have all outperformed the market and must be closely watched for investment opportunities.