KIRLOSKAR OIL ENG LTD performed worse than the broader market on Friday. It fell by -1.03% to close at 193.1. It is currently trading -52% below it's 52 week high of 405.3.
Buy-and-Hold investors in KIRLOSENG experienced a maximum drawdown of -16.62% over the last three months. It fell by -8.33% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +4.29%.
KIRLOSENG has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 6 Mar, 2017 to 18 Jan, 2019. One must note that KIRLOSENG is currently at it's worst performance to the NIFTY-50 index which makes it a bad investment candidate. Over the last 3 years and 1 month, KIRLOSENG underperformed the NIFTY-50 index on 53% days.
During the last three months KIRLOSENG was mostly loss making and delivered on average -0.12% per day. It's best return during this period (of +9.05%) was on Thursday, 20 Dec, 2018. While it's worst loss in the same period (of -3.88%) was on Friday, 21 Dec, 2018. The longest stort-term trend during this period was 8 losing days, which started on 9 Nov, 2018 and ended on 20 Nov, 2018. This bearish trend lost -5.32% of investor capital.
During the last year KIRLOSENG had 4 profitable months and 8 loss making months. KIRLOSENG returned profits in fewer months than NIFTY-50 index. KIRLOSENG was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -32.42% compared to -6.42% returned by NIFTY-50 index in Sep 2018. KIRLOSENG had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from May 2018 to Jul 2018) during which period it delivered -23.24%. It is interesting to note that both KIRLOSENG and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.
-- T.T. Munger
KIRLOSENG 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 KIRLOSENG's volatility from 19 Oct, 2018 to 18 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 KIRLOSENG has significant negative skewness in it's return distribution. This indicates that KIRLOSENG is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than KIRLOSENG. Therefore, NIFTY-50 must receive a lower allocation than KIRLOSENG in your portfolio. NIFTY-50 index usually has shorter drawdown period than KIRLOSENG.
Based on your interest in KIRLOSENG you may find it interesting to know that IGARASHI is highly volatile and investors investing in it must take extreme caution. Consider either reducing your exposure to IGARASHI or sufficiently diversifying your portfolio.
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