JKIL investors hurt by serious losses
22 Jan, 201913 min read
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JKUMAR INFR.LTD. has destroyed investor wealth on Tuesday. It fell by -2.43% to close at 118.25. It is currently trading -67% below it's 52 week high of 360.65.
JKIL is currently in a bearish trend. Over the last three months trading short signals has not been a profitable strategy for JKIL's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -2.99%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to JKIL.
JKIL has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 11 Jan, 2016 to 17 Dec, 2018. Over the last 3 years and 1 month, JKIL underperformed the NIFTY-50 index on 54% days.
During the last three months JKIL was mostly loss making and delivered on average -0.0% per day. It's best return during this period (of +18.16%) was on Tuesday, 18 Dec, 2018. While it's worst loss in the same period (of -4.9%) was on Monday, 26 Nov, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 30 Oct, 2018 and went on till 9 Nov, 2018. This bullish trend returned +27.93% to investors.
During the last year JKIL had 2 profitable months and 10 loss making months. JKIL returned profits in fewer months than NIFTY-50 index. JKIL significantly outperformed NIFTY-50 index in Aug 2018, when it returned +29.62% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. JKIL had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from Feb 2018 to Jul 2018) during which period it delivered -51.49%.
Too many people spend money they earned..to buy things they don't want..to impress people that they don't like.
-- Will Rogers
JKIL 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 JKIL's volatility from 18 Dec, 2018 to 22 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 JKIL has positive skewness in it's return distribution. This indicates that investors can expect JKIL to make attempts to recover from drawdowns quickly. Which makes JKIL a good candidate for momentum based trading on short-term bullish trends or counter-trends.
NIFTY-50 index has more chance of extreme outcomes than JKIL. Therefore, NIFTY-50 must receive a lower allocation than JKIL in your portfolio. JKIL usually has shorter drawdown period than the NIFTY-50 index.
On a general note (since you are interested in JKIL), two instruments that deserve special mention are BAJFINANCE and ~MUTHOOTGRP. They have significantly outperformed the overall market.
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