MASTEK LTD was among the worst performers today. It fell by -2.08% to close at 420.95. It's recent 5 day performance has been +0.24%, +1.64%, +2.63%, -0.63% and -3.6%.
MASTEK is currently in a bearish trend. Over the last three months trading short signals has not been a profitable strategy for MASTEK's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -4.45%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to MASTEK.
MASTEK has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 29 Sep, 2016 to 23 Apr, 2018. Over the last 3 years and 1 month, MASTEK outperformed the NIFTY-50 index on 46% days. Which indicates that on days MASTEK outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
MASTEK was profitable on 52% days in the last three months. During this time, it delivered on average -0.05% per day. It delivered it's best daily return of +6.08%, during this period, on Thursday, 25 Oct, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 2 Nov, 2018 and went on till 12 Nov, 2018. This bullish trend returned +7.83% to investors.
During the last year MASTEK had 6 profitable months and 6 loss making months. MASTEK returned profits in more months than NIFTY-50 index. MASTEK was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -13.07% compared to -6.42% returned by NIFTY-50 index in Sep 2018. MASTEK had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered +14.99%. It is interesting to note that both MASTEK and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Investment philosophy is the clear understanding that by owning shares of stocks he owns businesses, not pieces of paper.
-- Warren Edward Buffett
MASTEK is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in MASTEK's volatility from 24 Oct, 2018 to 26 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 MASTEK has significant negative skewness in it's return distribution. This indicates that MASTEK is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than MASTEK. Therefore, NIFTY-50 must receive a lower allocation than MASTEK in your portfolio. NIFTY-50 index usually has shorter drawdown period than MASTEK.
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