JYOTHY LABS LTD showed marginal outperformance on Friday. It increased by +0.15% to close at 196.35. On a day when the overall market breadth was 71%, it closed higher than 64% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.
JYOTHYLAB showed a bullish trend over the last 3 months. During this period JYOTHYLAB increased by +7.5% and saw a maximum drawdown of -8.26%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in JYOTHYLAB till volatility reduces and a clear trend emerges.
JYOTHYLAB has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 29 Jan, 2018 to 4 Jul, 2018. Over the last 3 years and 1 month, JYOTHYLAB underperformed the NIFTY-50 index on 52% days.
During the last three months JYOTHYLAB delivered losses on 56% days. However, it still managed to end this period in a profit. It's best return during this period (of +5.55%) was on Wednesday, 12 Dec, 2018. While it's worst loss in the same period (of -3.9%) was on Tuesday, 27 Nov, 2018. The longest stort-term trend during this period was 5 losing days, which started on 8 Jan, 2019 and ended on 14 Jan, 2019. This bearish trend lost -3.77% of investor capital.
During the last year JYOTHYLAB had 4 profitable months and 8 loss making months. JYOTHYLAB returned profits in fewer months than NIFTY-50 index. JYOTHYLAB significantly outperformed NIFTY-50 index in May 2018, when it returned +16.58% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. JYOTHYLAB had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Jul 2018 to Nov 2018) during which period it delivered -19.94%.
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JYOTHYLAB 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 JYOTHYLAB's volatility from 19 Oct, 2018 to 19 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 JYOTHYLAB has significant negative skewness in it's return distribution. This indicates that JYOTHYLAB is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than JYOTHYLAB. Therefore, NIFTY-50 must receive a lower allocation than JYOTHYLAB in your portfolio. NIFTY-50 index usually has shorter drawdown period than JYOTHYLAB.
Based on your interest in JYOTHYLAB you may find it interesting to know that WABCOINDIA has delivered similar performance as JYOTHYLAB and can be considered as an alternative investment candidate (to JYOTHYLAB).
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