70.75 -0.15 (-0.21%) Sell

Search for alternative investments is on for MANGALAM investors as it performed worse than the broader market

13 min read

MANGALAM ranked worse than it's peers today. On a longer term basis, investors in MANGALAM DRUG & CHEM LTD made +0.08% per day. Tuesday's performance of -0.21% was a underperformance compared to it's daily average.

[Themes containing MANGALAM]

Buy-and-Hold investors in MANGALAM experienced a maximum drawdown of -14.86% over the last three months. It fell by -7.82% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +4.9%.


MANGALAM has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 14 Jan, 2016 to 28 Aug, 2018. Over the last 3 years and 1 month, MANGALAM underperformed the NIFTY-50 index on 58% days.

MANGALAM returned losses on 61% days in the last three months. During this time, it delivered on average -0.11% per day. It delivered it's best daily return of +9.74%, during this period, on Monday, 29 Oct, 2018. The longest stort-term trend during this period was 8 losing days, which started on 20 Nov, 2018 and ended on 30 Nov, 2018. This bearish trend lost -6.33% of investor capital.

During the last year MANGALAM had 3 profitable months and 9 loss making months. MANGALAM returned profits in fewer months than NIFTY-50 index. MANGALAM was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -37.49% compared to -6.42% returned by NIFTY-50 index in Sep 2018. MANGALAM had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from Apr 2018 to Sep 2018) during which period it delivered -79.73%. It is interesting to note that both MANGALAM and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"The financial markets generally are unpredictable. So that one has to have different scenarios... The idea that you can actually predict what's going to happen contradicts my way of looking at the market.

MANGALAM 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 MANGALAM's volatility from 24 Oct, 2018 to 16 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 MANGALAM has significant negative skewness in it's return distribution. This indicates that MANGALAM is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in MANGALAM), VINATIORGA is a small cap that deserves to be closely tracked for investment opportunities.

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