281.2 -4.04 (-1.44%) Buy

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

14 min read

JET AIRWAYS (INDIA) LTD. was among the worst performers today. It fell by -1.44% to close at 281.2. It's recent 5 day performance has been +5.78%, -8.17%, -0.25%, +16.09% and +4.47%.

[Themes containing JETAIRWAYS]

JETAIRWAYS is currently in a bullish trend. Over the last three months 3 bullish signals in JETAIRWAYS have generated a profit of +4.39% for investors.


JETAIRWAYS has been outperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 12 Jan, 2016 to 1 Oct, 2018. Over the last 3 years and 1 month, JETAIRWAYS underperformed the NIFTY-50 index on 53% days.

During the last three months JETAIRWAYS delivered losses on 51% days. However, it still managed to end this period in a profit. It's best return during this period (of +24.43%) was on Thursday, 15 Nov, 2018. While it's worst loss in the same period (of -8.17%) was on Wednesday, 16 Jan, 2019. The longest stort-term trend during this period was 6 losing days, which started on 4 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -19.21% of investor capital.

During the last year JETAIRWAYS had 4 profitable months and 8 loss making months. JETAIRWAYS returned profits in fewer months than NIFTY-50 index. JETAIRWAYS significantly outperformed NIFTY-50 index in Nov 2018, when it returned +37.76% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. JETAIRWAYS had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from May 2018 to Sep 2018) during which period it delivered -106.46%. It is interesting to note that both JETAIRWAYS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"Investors must keep in mind that there's a difference between a good company and a good stock. After all, you can buy a good car but pay too much for it .

JETAIRWAYS is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in JETAIRWAYS's volatility from 29 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 JETAIRWAYS has significant negative skewness in it's return distribution. This indicates that JETAIRWAYS is very risky for short-term investment and can significantly underperform for long durations.

Investors trading in JETAIRWAYS derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in JETAIRWAYS you may find it interesting to know that CONSOFINVT, MCDHOLDING and DPSCLTD have all performed similar to JETAIRWAYS and qualify as alternative investment candidates that must be evaluated for diversification.

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