KIRIINDUS investors incur serious losses

KIRI INDUSTRIES LIMITED significantly underperformed on Friday. It delivered -1.44% to close at 442.35. On a day when the overall market breadth was 71%, it closed higher than 86% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing KIRIINDUS]

Buy-and-Hold investors in KIRIINDUS experienced a maximum drawdown of -17.14% over the last three months. It delivered +8.99% 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.

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KIRIINDUS has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 5 Feb, 2016 to 15 Jan, 2018. Over the last 3 years and 1 month, KIRIINDUS outperformed the NIFTY-50 index on 46% days. Which indicates that on days KIRIINDUS 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 KIRIINDUS delivered losses on 56% days. However, it still managed to end this period in a profit. It's best return during this period (of +9.99%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -4.11%) was on Monday, 10 Dec, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 26 Oct, 2018 and went on till 5 Nov, 2018. This bullish trend returned +21.99% to investors.

The last 12 months saw KIRIINDUS's investors making profits in 4 months and incurring losses in 8 months. KIRIINDUS was less consistent in delivering monthly returs than NIFTY-50 index. KIRIINDUS significantly outperformed NIFTY-50 index in May 2018, when it returned +31.38% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. KIRIINDUS had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered -35.16%. It is interesting to note that both KIRIINDUS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Thirty to 40 years ago, most financial decisions were fairly simple.
-- Scott Cook

KIRIINDUS 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 fall in KIRIINDUS's volatility from 13 Nov, 2018 to 7 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 KIRIINDUS has significant negative skewness in it's return distribution. This indicates that KIRIINDUS is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in KIRIINDUS you may find it interesting to know that NIFTY50-DIV-POINT and TIDEWATER are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).