JINDAL STEEL & POWER LTD underperformed today. It returned -0.27% to close at 145.65. During the last week it gained +1.15% and saw a maximum drawdown of -0.85% before bouncing back.
Buy-and-Hold investors in JINDALSTEL experienced a maximum drawdown of -22.08% over the last three months. It returned -12.39% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +12.39% for investors.
JINDALSTEL has been underperforming the NIFTY-50 index in recent time, after having outperformed till 23 Jan, 2018. Over the last 3 years and 1 month, JINDALSTEL outperformed the NIFTY-50 index on 50% days. Which indicates that on days JINDALSTEL outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
JINDALSTEL returned losses on 58% days in the last three months. During this time, it delivered on average -0.17% per day. It delivered it's worst daily return of -7.4%, during this period, on Thursday, 3 Jan, 2019. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 2 Nov, 2018. The bullish trend returned +14.04% to investors. This was followed by a bearish trend that started on 20 Nov, 2018 and ended on 28 Nov, 2018. This bearish trend lost -16.99% of investor capital.
On monthly basis, JINDALSTEL delivered losses in more months over the last year, than profits. JINDALSTEL delivered profits less regularly than NIFTY-50 index. JINDALSTEL was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -13.88% compared to -6.42% returned by NIFTY-50 index in Sep 2018. JINDALSTEL had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from May 2018 to Jul 2018) during which period it delivered -12.49%. It is interesting to note that both JINDALSTEL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
"The underlying principles of sound investment should not alter from decade to decade, but the application of these principles must be adapted to significant changes in the financial mechanisms and climate.
JINDALSTEL 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 JINDALSTEL's volatility from 24 Oct, 2018 to 18 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 JINDALSTEL 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.
Investors trading in JINDALSTEL derivatives at this moment can consider 'Long Strangle' options strategy to receive better risk-adjusted returns.
NIFTY-50 index has more chance of extreme outcomes than JINDALSTEL. Therefore, NIFTY-50 must receive a lower allocation than JINDALSTEL in your portfolio. NIFTY-50 index usually has shorter drawdown period than JINDALSTEL.
On a general note (since you are interested in JINDALSTEL), three instruments that deserve special mention are BRITANNIA, ~CHEMICALS and ~MKTCAP201TO250. They have all outperformed the market and must be closely watched for investment opportunities.
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