JK CEMENT LIMITED ranked among the best performers on Friday. It delivered +2.34% to close at 733.65. On a day when the overall market breadth was 71%, it closed higher than 41% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.
JKCEMENT showed a bullish trend over the last 3 months. During this period JKCEMENT delivered +7.18% and saw a maximum drawdown of -7.08%. There were 2 long signals during this period that returned a cumulative of +1.25% to investors.
JKCEMENT has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 5 Feb, 2016 to 15 May, 2017. Over the last 3 years and 1 month, JKCEMENT underperformed the NIFTY-50 index on 51% days.
During the last three months JKCEMENT delivered losses on 54% days. However, it still managed to end this period in a profit. It's best return during this period (of +4.33%) was on Monday, 19 Nov, 2018. While it's worst loss in the same period (of -2.5%) was on Monday, 24 Dec, 2018. The longest stort-term trend during this period was 5 losing days, which started on 21 Dec, 2018 and ended on 28 Dec, 2018. This bearish trend lost -5.97% of investor capital.
During the last year JKCEMENT had 5 profitable months and 7 loss making months. Profitable number of months of JKCEMENT and NIFTY-50 index were the same. JKCEMENT was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Oct 2018, returned -10.64% compared to -6.42% returned by NIFTY-50 index in Sep 2018. JKCEMENT had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Apr 2018 to Jul 2018) during which period it delivered -23.85%.
Be quick in cutting your loses but not profits
-- Abhishek Shukla
JKCEMENT 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 JKCEMENT's volatility from 19 Oct, 2018 to 11 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 JKCEMENT has significant negative skewness in it's return distribution. This indicates that JKCEMENT is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than JKCEMENT. Therefore, NIFTY-50 must receive a lower allocation than JKCEMENT in your portfolio. NIFTY-50 index usually has shorter drawdown period than JKCEMENT.
Based on your interest in JKCEMENT you may find it interesting to know that M&M has delivered similar performance as JKCEMENT and can be considered as an alternative investment candidate (to JKCEMENT).
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