Don't give up on OMAXAUTO now, it gave a fairly good return
18 Jan, 201913 min read
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OMAX AUTOS LTD is looking better than most other alternatives on Friday. It lost 0.0% to close at 86.65. It is currently trading -58% below it's 52 week high of 210.0.
OMAXAUTO showed a strong down trend over the last 3 months. During this period OMAXAUTO lost -10.49% and saw a maximum drawdown of -26.45%. There was a short signal during this period which returned +11.36%.
OMAXAUTO has been underperforming the NIFTY-50 index in recent time, after having outperformed till 29 Jan, 2018. Over the last 3 years and 1 month, OMAXAUTO underperformed the NIFTY-50 index on 55% days.
During the last three months OMAXAUTO was mostly loss making and delivered on average -0.13% per day. It's best return during this period (of +6.38%) was on Friday, 7 Dec, 2018. While it's worst loss in the same period (of -9.98%) was on Wednesday, 24 Oct, 2018. There was initially a bearish trend during this period which started on 12 Nov, 2018 and went on till 16 Nov, 2018. The trend delivered -7.87% losses to investors. This was followed by a bullish trend that started on 7 Dec, 2018 and ended on 13 Dec, 2018. This bullish trend delivered +10.01% to investors.
OMAXAUTO had 3 profitable and 9 loss making months over the last year. During the last year, OMAXAUTO underperformed NIFTY-50 index on monthly return basis. OMAXAUTO was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jul 2018, returned -30.8% compared to -6.42% returned by NIFTY-50 index in Sep 2018. OMAXAUTO had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Sep 2018 to Nov 2018) during which period it delivered -31.33%.
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OMAXAUTO 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 surge in OMAXAUTO's volatility from 23 Oct, 2018 to 10 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 OMAXAUTO has significant negative skewness in it's return distribution. This indicates that OMAXAUTO is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than OMAXAUTO. Therefore, NIFTY-50 must receive a lower allocation than OMAXAUTO in your portfolio. NIFTY-50 index usually has shorter drawdown period than OMAXAUTO.
On a general note (since you are interested in OMAXAUTO), two instruments that have been extremely volatile in recent times are IGARASHI and HATSUN. Investors in these instruments should consider reducing their exposure (to IGARASHI and HATSUN) and diversifying their portfolios.
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