NATCO PHARMA LTD. underperformed broader market today. It delivered -0.14% to close at 688.85. During the last week it delivered -0.11% and saw a maximum drawdown of -1.9% before bouncing back.
Buy-and-Hold investors in NATCOPHARM experienced a maximum drawdown of -12.75% over the last three months. It delivered -1.39% during this bearish trending period. There were no long signals during this period, where the short signal generated profits of +1.39% for investors.
NATCOPHARM has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 30 Mar, 2016 to 9 Jun, 2017. Over the last 3 years and 1 month, NATCOPHARM underperformed the NIFTY-50 index on 52% days.
NATCOPHARM returned losses on 51% days in the last three months. During this time, it delivered on average -0.01% per day. It delivered it's best daily return of +3.67%, during this period, on Monday, 29 Oct, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 26 Oct, 2018 and went on till 2 Nov, 2018. This bullish trend returned +12.96% to investors.
The last 12 months saw NATCOPHARM's investors making profits in 3 months and incurring losses in 9 months. NATCOPHARM was less consistent in delivering monthly returs than NIFTY-50 index. NATCOPHARM was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Feb 2018, returned -15.05% compared to -6.42% returned by NIFTY-50 index in Sep 2018. NATCOPHARM had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from May 2018 to Sep 2018) during which period it delivered -5.35%. It is interesting to note that both NATCOPHARM and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
I'm involved in the stock market, which is fun and, sometimes, very painful.
-- Regis Philbin
NATCOPHARM 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 NATCOPHARM's volatility from 29 Oct, 2018 to 19 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 NATCOPHARM 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.
NIFTY-50 index has more chance of extreme outcomes than NATCOPHARM. Therefore, NIFTY-50 must receive a lower allocation than NATCOPHARM in your portfolio. NIFTY-50 index usually has shorter drawdown period than NATCOPHARM.
Based on your interest in NATCOPHARM you may find it interesting to know that BRITANNIA and BAJFINANCE are both large caps that have shown remarkable performance and deserve to be on every investors' watchlist.
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