3.5 -0.05 (-1.41%) Buy

Search for alternative investments is on for JPINFRATEC investors as it underperforms

15 min read

JAYPEE INFRATECH LTD is a falling knife that can bleed you if you catch it today. It lost -1.41% to close at 3.5. During the last week it lost -4.11% and saw a maximum drawdown of -4.11%.

[Themes containing JPINFRATEC]

Buy-and-Hold investors in JPINFRATEC experienced a maximum drawdown of -24.73% over the last three months. It gained +48.94% during this strong up 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 +25.0%.


JPINFRATEC has been underperforming the NIFTY-50 index in recent time, after having outperformed till 25 Jul, 2017. Over the last 3 years and 1 month, JPINFRATEC underperformed the NIFTY-50 index on 57% days.

JPINFRATEC returned losses on 57% days in the last three months. During this time, it delivered on average +0.69% per day. It delivered it's worst daily return of -5.0%, during this period, on Monday, 17 Dec, 2018. There was initially a bullish trend during this period which started on 13 Nov, 2018 and went on till 6 Dec, 2018. The bullish trend returned +67.56% to investors. This was followed by a bearish trend that started on 10 Jan, 2019 and ended on 15 Jan, 2019. This bearish trend lost -8.02% of investor capital.

JPINFRATEC had 3 profitable and 9 loss making months over the last year. During the last year, JPINFRATEC underperformed NIFTY-50 index on monthly return basis. JPINFRATEC significantly outperformed NIFTY-50 index in Nov 2018, when it returned +65.96% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. JPINFRATEC 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 -76.25%.

You must gain control over your money or the lack of it will forever control you.
-- Dave Ramsey

JPINFRATEC is becoming less volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant fall in JPINFRATEC's volatility from 22 Oct, 2018 to 29 Nov, 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 JPINFRATEC has significant negative skewness in it's return distribution. This indicates that JPINFRATEC is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in JPINFRATEC), two instruments that have delivered similar performance as JPINFRATEC are ARCOTECH and VIPULLTD. They are suitable as good alternative investment candidates that can diversify your portfolio.

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