JAIPRAKASH ASSOCIATES LTD

7.15 -0.1 (-1.38%) Sell

Stop-loss on the minds of JPASSOCIAT investors as it ranked worse than it's peers

13 min read

JAIPRAKASH ASSOCIATES LTD trailed the broader market on Friday. It fell by -1.38% to close at 7.15. It is currently trading -68% below it's 52 week high of 23.0.

[Themes containing JPASSOCIAT]

Buy-and-Hold investors in JPASSOCIAT experienced a maximum drawdown of -10.69% over the last three months. It delivered +9.16% during this 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.

Trend

JPASSOCIAT has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 28 Jul, 2017 to 28 Sep, 2018. Over the last 3 years and 1 month, JPASSOCIAT underperformed the NIFTY-50 index on 54% days.

During the last three months JPASSOCIAT delivered losses on 59% days. However, it still managed to end this period in a profit. It's best return during this period (of +6.99%) was on Thursday, 27 Dec, 2018. While it's worst loss in the same period (of -7.74%) was on Monday, 24 Dec, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 29 Oct, 2018 and went on till 5 Nov, 2018. This bullish trend returned +14.61% to investors.

During the last year JPASSOCIAT had 5 profitable months and 7 loss making months. Profitable number of months of JPASSOCIAT and NIFTY-50 index were the same. JPASSOCIAT was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -44.77% compared to -6.42% returned by NIFTY-50 index in Sep 2018. JPASSOCIAT had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Jul 2018 to Oct 2018) during which period it delivered -77.46%.

"You have venture capitalists. We view them as experts who also help finance your company and give directions and also some pretty candid discussions about what you have to do better.

JPASSOCIAT 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 JPASSOCIAT'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 JPASSOCIAT 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.

Investors trading in JPASSOCIAT derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in JPASSOCIAT you may find it interesting to know that TCS and BAJFINANCE are both large caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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