60.8 -0.25 (-0.41%) Sell

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

13 min read

JAMNA AUTO IND LTD showed weakness on Friday. It delivered -0.41% to close at 60.8 which is it's 52 week low, down -39% from it's 52 week high.

[Themes containing JAMNAAUTO]

Buy-and-Hold investors in JAMNAAUTO experienced a maximum drawdown of -22.05% over the last three months. It delivered -13.33% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.


JAMNAAUTO has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 29 Feb, 2016 to 2 May, 2018. Over the last 3 years and 1 month, JAMNAAUTO outperformed the NIFTY-50 index on 49% days. Which indicates that on days JAMNAAUTO 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 JAMNAAUTO was mostly loss making and delivered on average -0.21% per day. It's best return during this period (of +5.33%) was on Thursday, 20 Dec, 2018. While it's worst loss in the same period (of -4.69%) was on Monday, 26 Nov, 2018. The longest stort-term trend during this period was 7 losing days, which started on 12 Nov, 2018 and ended on 20 Nov, 2018. This bearish trend lost -10.21% of investor capital.

The last 12 months saw JAMNAAUTO's investors making profits in 3 months and incurring losses in 9 months. JAMNAAUTO was less consistent in delivering monthly returs than NIFTY-50 index. JAMNAAUTO significantly outperformed NIFTY-50 index in Apr 2018, when it returned +16.67% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. JAMNAAUTO had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from Aug 2018 to Jan 2019) during which period it delivered -37.57%. It is interesting to note that both JAMNAAUTO and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Thirty to 40 years ago, most financial decisions were fairly simple.
-- Scott Cook

JAMNAAUTO 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 fall in JAMNAAUTO's volatility from 12 Dec, 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 JAMNAAUTO has significant negative skewness in it's return distribution. This indicates that JAMNAAUTO is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in JAMNAAUTO you may find it interesting to know that TORNTPHARM, BRITANNIA and INFY are large caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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