215.1 -0.8 (-0.37%) Buy

MHRIL investors looking to cut their losses short

13 min read

MAHINDRA HOLIDAYS LTD performed worse than the broader market on Friday. It fell by -0.37% to close at 215.1. It is currently trading -43% below it's 52 week high of 377.95.

[Themes containing MHRIL]

Buy-and-Hold investors in MHRIL experienced a maximum drawdown of -14.84% over the last three months. It surged by +6.01% during this bullish 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 +7.21%.


MHRIL has been outperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 7 Jul, 2017 to 19 Dec, 2018. Over the last 3 years and 1 month, MHRIL underperformed the NIFTY-50 index on 55% days.

MHRIL returned losses on 54% 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 +6.98%, during this period, on Friday, 28 Dec, 2018. The longest stort-term trend during this period was 5 losing days, which started on 5 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -5.64% of investor capital.

During the last year MHRIL had 6 profitable months and 6 loss making months. MHRIL returned profits in more months than NIFTY-50 index. MHRIL was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -16.38% compared to -6.42% returned by NIFTY-50 index in Sep 2018. MHRIL had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Jun 2018 to Sep 2018) during which period it delivered -46.63%. It is interesting to note that both MHRIL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Persist - don't take no for an answer. If you're happy to sit at your desk and not take any risk, you'll be sitting at your desk for the next 20 years.
-- David Rubenstein

MHRIL 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 MHRIL's volatility from 19 Oct, 2018 to 20 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 MHRIL has significant negative skewness in it's return distribution. This indicates that MHRIL is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in MHRIL you may find it interesting to know that SRIPIPES is highly volatile and investors investing in it must take extreme caution. Consider either reducing your exposure to SRIPIPES or sufficiently diversifying your portfolio.

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