MOREPEN LAB. LTD underperformed broader market on Tuesday. It returned -0.49% to close at 20.4. On a day when the overall market breadth was 70%, it closed higher than 89% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0036%.
Buy-and-Hold investors in MOREPENLAB experienced a maximum drawdown of -23.51% over the last three months. It returned -8.72% during this down 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 +1.75%.
MOREPENLAB has been underperforming the NIFTY-50 index in recent time, after having outperformed till 4 Jan, 2016. Over the last 3 years and 1 month, MOREPENLAB underperformed the NIFTY-50 index on 59% days.
During the last three months MOREPENLAB was mostly loss making and delivered on average -0.1% per day. It's best return during this period (of +9.83%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -5.64%) was on Friday, 2 Nov, 2018. There was initially a bullish trend during this period which started on 26 Oct, 2018 and went on till 31 Oct, 2018. The bullish trend returned +18.02% to investors. This was followed by a bearish trend that started on 28 Nov, 2018 and ended on 10 Dec, 2018. This bearish trend lost -17.42% of investor capital.
On monthly basis, MOREPENLAB delivered losses in more months over the last year, than profits. MOREPENLAB delivered profits less regularly than NIFTY-50 index. MOREPENLAB significantly outperformed NIFTY-50 index in Jul 2018, when it returned +22.14% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. MOREPENLAB and NIFTY-50 index, both had periods of 2 consecutive losing months. It is interesting to note that both MOREPENLAB and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
There is nothing wrong with changing a plan when the situation has changed.
MOREPENLAB 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 MOREPENLAB's volatility from 18 Dec, 2018 to 21 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 MOREPENLAB has significant negative skewness in it's return distribution. This indicates that MOREPENLAB is very risky for short-term investment and can significantly underperform for long durations.
MOREPENLAB has more chance of extreme outcomes than the NIFTY-50 index. Therefore, MOREPENLAB must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than MOREPENLAB.
Based on your interest in MOREPENLAB you may find it interesting to know that BHARATGEAR, SORILINFRA and GULFPETRO have all performed similar to MOREPENLAB and qualify as alternative investment candidates that must be evaluated for diversification.
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