NIIT LIMITED performed better than the broader market on Tuesday. It returned +0.64% to close at 93.65. On a day when the overall market breadth was 70%, it closed higher than 71% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0036%.
Buy-and-Hold investors in NIITLTD experienced a maximum drawdown of -10.45% over the last three months. It returned +30.7% during this strong up 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 +19.45%.
During the last three months NIITLTD delivered losses on 51% days. However, it still managed to end this period in a profit. It's best return during this period (of +8.37%) was on Monday, 3 Dec, 2018. While it's worst loss in the same period (of -4.27%) was on Monday, 10 Dec, 2018. There was initially a bearish trend during this period which started on 5 Dec, 2018 and went on till 10 Dec, 2018. The trend delivered -9.67% losses to investors. This was followed by a bullish trend that started on 11 Jan, 2019 and ended on 22 Jan, 2019. This bullish trend delivered +12.09% to investors.
On monthly basis, NIITLTD delivered profits in more months over the last year, than losses. NIITLTD delivered profits in more months than NIFTY-50 index. NIITLTD was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -23.51% compared to -6.42% returned by NIFTY-50 index in Sep 2018. NIITLTD 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 +28.03%. It is interesting to note that both NIITLTD and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
A highly developed stock exchange cannot be a club for the cult of ethics.
-- Max Weber
NIITLTD is becoming more 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 NIITLTD's volatility from 25 Oct, 2018 to 8 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 NIITLTD has significant negative skewness in it's return distribution. This indicates that NIITLTD is very risky for short-term investment and can significantly underperform for long durations.
NIITLTD has more chance of extreme outcomes than the NIFTY-50 index. Therefore, NIITLTD must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than NIITLTD.
Based on your interest in NIITLTD you may find it interesting to know that NIFTY-GS-15YRPLUS has shown remarkable performance and deserves to be on every investors' watchlist.
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