Search for alternative investments is on for JSWSTEEL investors as it underperforms
18 Jan, 201913 min read
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JSW STEEL LIMITED underperformed today. It fell by -1.18% to close at 285.6. It's recent 5 day performance has been +0.89%, -1.93%, +2.89%, -1.7% and -0.17%.
JSWSTEEL is currently in a bearish trend. The current bearish signal has generated a profit of +15.37% for investors in the last three months.
JSWSTEEL has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 1 Jan, 2016 to 19 Sep, 2018. Over the last 3 years and 1 month, JSWSTEEL outperformed the NIFTY-50 index on 51% days.
During the last three months JSWSTEEL was mostly loss making and delivered on average -0.37% per day. It's best return during this period (of +2.93%) was on Friday, 2 Nov, 2018. While it's worst loss in the same period (of -5.13%) was on Monday, 24 Dec, 2018. The longest stort-term trend during this period was 6 losing days, which started on 20 Nov, 2018 and ended on 28 Nov, 2018. This bearish trend lost -8.56% of investor capital.
During the last year JSWSTEEL had 5 profitable months and 7 loss making months. Profitable number of months of JSWSTEEL and NIFTY-50 index were the same. JSWSTEEL significantly outperformed NIFTY-50 index in Aug 2018, when it returned +19.96% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. JSWSTEEL had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Sep 2018 to Jan 2019) during which period it delivered -31.28%. It is interesting to note that both JSWSTEEL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Happiness lies in the joy of achievement and the thrill of creative effort.
-- Franklin D. Roosevelt
JSWSTEEL 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 JSWSTEEL's volatility from 19 Oct, 2018 to 17 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 JSWSTEEL 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 JSWSTEEL derivatives at this moment can consider 'Married Put' options strategy to receive better risk-adjusted returns.
JSWSTEEL has more chance of extreme outcomes than the NIFTY-50 index. Therefore, JSWSTEEL must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than JSWSTEEL.
Based on your interest in JSWSTEEL you may find it interesting to know that ~MKTCAP201TO250 and NIFTY-GS-15YRPLUS have both shown remarkable performance and deserve to be on every investors' watchlist.
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