Search for alternative investments is on for MOIL investors as it underperforms
18 Jan, 201913 min read
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MOIL LIMITED ranked worse than it's peers today. It delivered -0.73% to close at 163.4. It's recent 5 day performance has been -0.57%, -0.54%, -0.06%, -0.89% and +0.45%.
MOIL is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +4.53% for investors.
MOIL has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 22 Feb, 2016 to 23 Oct, 2017. Over the last 3 years and 1 month, MOIL outperformed the NIFTY-50 index on 45% days. Which indicates that on days MOIL outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
During the last three months MOIL was mostly loss making and delivered on average -0.04% per day. It's best return during this period (of +3.2%) was on Friday, 26 Oct, 2018. While it's worst loss in the same period (of -3.47%) was on Tuesday, 23 Oct, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 30 Nov, 2018 and went on till 10 Dec, 2018. This bullish trend returned +4.76% to investors.
The last 12 months saw MOIL's investors making profits in 5 months and incurring losses in 7 months. During the last year, MOIL and NIFTY-50 index had the same number of profitable months. MOIL significantly outperformed NIFTY-50 index in Oct 2018, when it returned +13.82% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. MOIL and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both MOIL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
"The most popular investing products are the worst ones for investors.
MOIL 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 MOIL's volatility from 31 Oct, 2018 to 11 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 MOIL has significant negative skewness in it's return distribution. This indicates that MOIL is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than MOIL. Therefore, NIFTY-50 must receive a lower allocation than MOIL in your portfolio. NIFTY-50 index usually has shorter drawdown period than MOIL.
Based on your interest in MOIL you may find it interesting to know that TORNTPHARM is a large cap that has shown remarkable performance and deserves to be on every investors' watchlist.
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