111.4 -2.35 (-2.11%) Sell

Stop-loss on the minds of LOVABLE investors as it significantly underperforms

13 min read

LOVABLE delivered massive losses today. On a longer term basis, investors in LOVABLE LINGERIE LTD made -0.07% per day. Friday's performance of -2.11% was a significant underperformance compared to it's daily average.

[Themes containing LOVABLE]

Buy-and-Hold investors in LOVABLE experienced a maximum drawdown of -17.62% over the last three months. It gained +2.25% during this up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.


LOVABLE has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, LOVABLE underperformed the NIFTY-50 index on 57% days.

LOVABLE returned losses on 59% days in the last three months. During this time, it delivered on average +0.08% per day. It delivered it's best daily return of +10.48%, during this period, on Friday, 21 Dec, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 5 Nov, 2018. The bullish trend returned +13.79% to investors. This was followed by a bearish trend that started on 30 Nov, 2018 and ended on 10 Dec, 2018. This bearish trend lost -8.75% of investor capital.

LOVABLE had 6 profitable and 6 loss making months over the last year. LOVABLE was profitable in more months than NIFTY-50 index. LOVABLE was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -22.82% compared to -6.42% returned by NIFTY-50 index in Sep 2018. LOVABLE and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both LOVABLE and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Formal education will make you a living; self-education will make you a fortune.
-- Jim Rohn

LOVABLE is becoming more volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant surge in LOVABLE's volatility from 3 Dec, 2018 to 2 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 LOVABLE has significant negative skewness in it's return distribution. This indicates that LOVABLE is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in LOVABLE), NIITTECH has performed really well this year and deserves to be closely tracked for investment opportunities.

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