LA OPALA RG LIMITED showed marginal outperformance today. It increased by +0.27% to close at 220.55. During the last week it increased by +2.53%.
LAOPALA is currently in a bearish trend. Over the last three months trading short signals has not been a profitable strategy for LAOPALA's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -1.74%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to LAOPALA.
LAOPALA has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 3 Feb, 2016 to 28 Aug, 2018. Over the last 3 years and 1 month, LAOPALA underperformed the NIFTY-50 index on 53% days.
During the last three months LAOPALA was mostly loss making and delivered on average -0.02% per day. It's best return during this period (of +4.02%) was on Tuesday, 8 Jan, 2019. While it's worst loss in the same period (of -3.5%) was on Friday, 30 Nov, 2018. The longest stort-term trend during this period was 4 profitable days, which started on 15 Jan, 2019 and went on till 18 Jan, 2019. This bullish trend returned +2.52% to investors.
The last 12 months saw LAOPALA's investors making profits in 6 months and incurring losses in 6 months. During the last year, LAOPALA delivered profits in more months than NIFTY-50 index. LAOPALA was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -11.68% compared to -6.42% returned by NIFTY-50 index in Sep 2018. LAOPALA had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Mar 2018 to Jun 2018) during which period it delivered -31.89%. It is interesting to note that both LAOPALA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Financial support is one thing, but I always think what becomes really sacrificial is your time.
-- Cliff Richard
LAOPALA 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 LAOPALA's volatility from 22 Oct, 2018 to 21 Dec, 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 LAOPALA has significant negative skewness in it's return distribution. This indicates that LAOPALA is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than LAOPALA. Therefore, NIFTY-50 must receive a lower allocation than LAOPALA in your portfolio. NIFTY-50 index usually has shorter drawdown period than LAOPALA.
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