JM FINANCIAL LIMITED trailed the broader market on Friday. It delivered -1.14% to close at 86.65. On a day when the overall market breadth was 71%, it closed higher than 76% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.
Buy-and-Hold investors in JMFINANCIL experienced a maximum drawdown of -8.97% over the last three months. It surged by +21.44% during this strong bullish 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 +7.54%.
JMFINANCIL has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 20 Jan, 2016 to 16 Oct, 2017. Over the last 3 years and 1 month, JMFINANCIL outperformed the NIFTY-50 index on 48% days. Which indicates that on days JMFINANCIL outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
JMFINANCIL returned losses on 54% days in the last three months. During this time, it delivered on average +0.34% per day. It delivered it's best daily return of +9.78%, during this period, on Monday, 29 Oct, 2018. The longest stort-term trend during this period was 4 profitable days, which started on 14 Nov, 2018 and went on till 19 Nov, 2018. This bullish trend returned +10.12% to investors.
The last 12 months saw JMFINANCIL's investors making profits in 4 months and incurring losses in 8 months. JMFINANCIL was less consistent in delivering monthly returs than NIFTY-50 index. JMFINANCIL was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -28.16% compared to -6.42% returned by NIFTY-50 index in Sep 2018. JMFINANCIL 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 -21.3%. It is interesting to note that both JMFINANCIL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
It's how you deal with failure that determines how you achieve success.
-- David Feherty
JMFINANCIL 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 JMFINANCIL's volatility from 19 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 JMFINANCIL 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.
JMFINANCIL has more chance of extreme outcomes than the NIFTY-50 index. Therefore, JMFINANCIL must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than JMFINANCIL.
Based on your interest in JMFINANCIL you may find it interesting to know that WELENT has delivered similar performance as JMFINANCIL and can be considered as an alternative investment candidate (to JMFINANCIL).
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