LAURUSLABS investors take a moment to reassess their portfolio allocation

LAURUS LABS LIMITED delivered lacklustre performance on Tuesday. It fell by -0.63% to close at 376.7. It is currently trading -32% below it's 52 week high of 554.8.

[Themes containing LAURUSLABS]

LAURUSLABS is currently in a bearish trend. Over the last three months trading short signals has not been a profitable strategy for LAURUSLABS's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned +0.41%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to LAURUSLABS.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

LAURUSLABS has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 3 Jul, 2017 to 31 Oct, 2018. Over the last 2 years 1 month and 3 day, LAURUSLABS underperformed the NIFTY-50 index on 54% days.

During the last three months LAURUSLABS delivered losses on 54% days. However, it still managed to end this period in a profit. It's best return during this period (of +4.62%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -5.6%) was on Thursday, 25 Oct, 2018. The longest stort-term trends during this period were 4 profitable and losing days. The bullish trend (which returned +9.7%) started on 14 Nov, 2018 and went on till 19 Nov, 2018 while the bearish trend (which returned -1.99%) started on 7 Jan, 2019 and went on till 10 Jan, 2019.

During the last year LAURUSLABS had 3 profitable months and 9 loss making months. LAURUSLABS returned profits in fewer months than NIFTY-50 index. LAURUSLABS was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Oct 2018, returned -20.44% compared to -6.42% returned by NIFTY-50 index in Sep 2018. LAURUSLABS had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from May 2018 to Oct 2018) during which period it delivered -37.58%.

"When you're building a company, you need to continually strengthen every component - finance, strategic partnerships, executive team, and relationships with every last constituency.

LAURUSLABS 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 LAURUSLABS's volatility from 24 Oct, 2018 to 21 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 LAURUSLABS has significant negative skewness in it's return distribution. This indicates that LAURUSLABS is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in LAURUSLABS), two small cap instruments that deserve special mention are IGARASHI and RESPONIND. They have significantly outperformed the overall market.