MANAPPURAM FINANCE LTD

97.4 -2.15 (-2.21%) Buy

Search for alternative investments is on for MANAPPURAM investors as it ranked worse than it's peers

13 min read

MANAPPURAM FINANCE LTD significantly underperformed today. It returned -2.21% to close at 97.4. During the last week it returned +2.04% and saw a maximum drawdown of -2.21% before bouncing back.

[Themes containing MANAPPURAM]

Buy-and-Hold investors in MANAPPURAM experienced a maximum drawdown of -7.99% over the last three months. It returned +40.55% during this strong 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. The net profit from Long signals was +9.26%.

Trend

MANAPPURAM has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, MANAPPURAM outperformed the NIFTY-50 index on 51% days.

During the last three months MANAPPURAM was mostly profitable and delivered on average +0.57% per day. It's best return during this period (of +5.71%) was on Friday, 2 Nov, 2018. While it's worst loss in the same period (of -3.87%) was on Thursday, 6 Dec, 2018. There was initially a bullish trend during this period which started on 19 Oct, 2018 and went on till 24 Oct, 2018. The bullish trend returned +4.64% to investors. This was followed by a bearish trend that started on 3 Dec, 2018 and ended on 6 Dec, 2018. This bearish trend lost -8.08% of investor capital.

On monthly basis, MANAPPURAM delivered profits in more months over the last year, than losses. MANAPPURAM delivered profits in more months than NIFTY-50 index. MANAPPURAM was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -27.83% compared to -6.42% returned by NIFTY-50 index in Sep 2018. MANAPPURAM had a longer winning streak of profitable months than NIFTY-50 index. It went up in 4 straight months (from Oct 2018 to Jan 2019) during which period it delivered +28.55%. It is interesting to note that both MANAPPURAM and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

The stock market is filled with individuals who know the price of everything, but the value of nothing.
-- Philip Arthur Fisher

MANAPPURAM is becoming less volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant fall in MANAPPURAM's volatility from 1 Nov, 2018 to 4 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 MANAPPURAM has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

Investors trading in MANAPPURAM derivatives at this moment can consider 'Long Straddle' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in MANAPPURAM), if you are an investor in SRIPIPES, you need to be extra careful (consider limiting your exposure or diversifying) as it is extremely unpredictable and therefore risky.

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