MUTHOOTFIN investors re-evaluating their investment strategy

MUTHOOT FINANCE LIMITED trailed the broader market today. It fell by -1.09% to close at 527.6. It's recent 5 day performance has been -0.7%, -0.83%, +1.88%, -1.17% and +2.55%.

[Themes containing MUTHOOTFIN]

MUTHOOTFIN is currently in a bullish trend. Over the last three months 2 bullish signals in MUTHOOTFIN have generated a profit of +1.21% for investors.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

MUTHOOTFIN has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 1 Jan, 2016 to 15 Jan, 2019. Over the last 3 years and 1 month, MUTHOOTFIN outperformed the NIFTY-50 index on 48% days. Which indicates that on days MUTHOOTFIN 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 MUTHOOTFIN was mostly profitable and delivered on average +0.55% per day. It's best return during this period (of +12.04%) was on Friday, 7 Dec, 2018. While it's worst loss in the same period (of -5.97%) was on Thursday, 6 Dec, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 31 Oct, 2018 and went on till 9 Nov, 2018. This bullish trend returned +15.47% to investors.

During the last year MUTHOOTFIN had 7 profitable months and 5 loss making months. MUTHOOTFIN returned profits in more months than NIFTY-50 index. MUTHOOTFIN significantly outperformed NIFTY-50 index in Dec 2018, when it returned +14.01% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. MUTHOOTFIN had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Nov 2018 to Jan 2019) during which period it delivered +26.83%. It is interesting to note that both MUTHOOTFIN and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Making money from enforcing patents is no more wrong than investing in preferred stock.
-- Nathan Myhrvold

MUTHOOTFIN 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 MUTHOOTFIN's volatility from 19 Oct, 2018 to 18 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 MUTHOOTFIN has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

Investors trading in MUTHOOTFIN derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in MUTHOOTFIN you may find it interesting to know that BAJFINANCE is a large cap that has shown remarkable performance and deserves to be on every investors' watchlist.