JSW HOLDINGS LIMITED showed marginal outperformance on Friday. It increased by +0.06% to close at 2589.7. On a day when the overall market breadth was 71%, it closed higher than 73% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.
JSWHL showed a strong bullish trend over the last 3 months. During this period JSWHL increased by +28.25% and saw a maximum drawdown of -13.15%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in JSWHL till volatility reduces and a clear trend emerges.
JSWHL has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 2 Jun, 2016 to 7 Jan, 2019. Over the last 3 years and 1 month, JSWHL outperformed the NIFTY-50 index on 50% days. Which indicates that on days JSWHL outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
During the last three months JSWHL was mostly profitable and delivered on average +0.44% per day. It's best return during this period (of +16.09%) was on Wednesday, 2 Jan, 2019. While it's worst loss in the same period (of -4.72%) was on Tuesday, 27 Nov, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 9 Nov, 2018 and went on till 16 Nov, 2018. This bullish trend returned +8.61% to investors.
During the last year JSWHL had 9 profitable months and 3 loss making months. JSWHL returned profits in more months than NIFTY-50 index. JSWHL significantly outperformed NIFTY-50 index in Aug 2018, when it returned +22.6% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. JSWHL had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Jul 2018 to Sep 2018) during which period it delivered +32.1%. It is interesting to note that both JSWHL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
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JSWHL is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant surge in JSWHL's volatility from 22 Nov, 2018 to 3 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 JSWHL 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.
NIFTY-50 index has more chance of extreme outcomes than JSWHL. Therefore, NIFTY-50 must receive a lower allocation than JSWHL in your portfolio. NIFTY-50 index usually has shorter drawdown period than JSWHL.
Based on your interest in JSWHL you may find it interesting to know that CUB is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.
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