JULLUNDUR MOT AGENCY LTD

166.75 0.0 (0.0%) Buy

JMA investors update their stop-losses higher

13 min read

JULLUNDUR MOT AGENCY LTD showed marginal outperformance today. It delivered 0.0% to close at 166.75. It's recent 5 day performance has been -2.43%, -0.41%, +3.16%, -2.55% and -0.76%.

[Themes containing JMA]

JMA is currently in a bullish trend. Over the last three months trading long signals has not been a profitable strategy for JMA's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -3.45%). It is therefore better to tread with caution in the current uptrend by limiting your allocation to JMA.

Trend

JMA has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 26 Apr, 2017 to 1 Oct, 2018. Over the last 3 years and 1 month, JMA underperformed the NIFTY-50 index on 52% days.

During the last three months JMA was mostly loss making and delivered on average -0.03% per day. It's best return during this period (of +5.74%) was on Monday, 3 Dec, 2018. While it's worst loss in the same period (of -3.91%) was on Thursday, 6 Dec, 2018. 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 -10.72% of investor capital.

The last 12 months saw JMA's investors making profits in 5 months and incurring losses in 7 months. During the last year, JMA and NIFTY-50 index had the same number of profitable months. JMA was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -21.82% compared to -6.42% returned by NIFTY-50 index in Sep 2018. JMA 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 -28.91%. It is interesting to note that both JMA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Financial security and independence are like a three-legged stool resting on savings, insurance and investments.
-- Brian Tracy

JMA 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 JMA'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 JMA has significant negative skewness in it's return distribution. This indicates that JMA is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in JMA you may find it interesting to know that INFY is a large cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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