JINDWORLD investors herd to book profits while the going is good

JINDWORLD significantly underperformed today. On a longer term basis, investors in JINDAL WORLDWIDE LTD made +0.23% per day. Friday's performance of -1.4% was a significant underperformance compared to it's daily average.

[Themes containing JINDWORLD]

Buy-and-Hold investors in JINDWORLD experienced a maximum drawdown of -19.75% over the last three months. It gained +13.63% during this strong up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +11.02%.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

JINDWORLD has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, JINDWORLD outperformed the NIFTY-50 index on 49% days. Which indicates that on days JINDWORLD outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

JINDWORLD was profitable on 53% days in the last three months. During this time, it delivered on average +0.26% per day. It delivered it's best daily return of +9.99%, during this period, on Tuesday, 30 Oct, 2018. There was initially a bearish trend during this period which started on 1 Nov, 2018 and went on till 6 Nov, 2018. The trend delivered -21.21% losses to investors. This was followed by a bullish trend that started on 11 Dec, 2018 and ended on 24 Dec, 2018. This bullish trend delivered +14.15% to investors.

On monthly basis, JINDWORLD delivered losses in more months over the last year, than profits. JINDWORLD delivered profits less regularly than NIFTY-50 index. JINDWORLD was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -25.85% compared to -6.42% returned by NIFTY-50 index in Sep 2018. JINDWORLD had a longer winning streak of losing months than NIFTY-50 index. It went down in 10 straight months (from Feb 2018 to Nov 2018) during which period it delivered -82.01%. It is interesting to note that both JINDWORLD and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

The individual investor should act consistently as an investor and not as a speculator.
-- Ben Graham

JINDWORLD 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 JINDWORLD's volatility from 22 Oct, 2018 to 14 Dec, 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 JINDWORLD has significant negative skewness in it's return distribution. This indicates that JINDWORLD is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in JINDWORLD), two instruments that have delivered similar performance as JINDWORLD are MOTOGENFIN and VARDHACRLC. They are suitable as good alternative investment candidates that can diversify your portfolio.