220.55 +0.6 (+0.27%) Sell

Joy for LAOPALA investors as it shows marginal outperformance

14 min read

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%.

[Themes containing LAOPALA]

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.

Based on your interest in LAOPALA you may find it interesting to know that FDC and PTC have both performed similar to LAOPALA and can be considered by investors as alternative investment options.

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