OMAXE continues it's uptrend, although on a weaker note
18 Jan, 201913 min read
Share with friends 
OMAXE LIMITED ranked better than it's peers on Friday. It fell by 0.0% to close at 213.7. It is currently trading -7% below it's 52 week high of 230.1.
Buy-and-Hold investors in OMAXE experienced a maximum drawdown of -3.0% over the last three months. It delivered -0.47% during this flat trending period. There were both Long and Short signals during this period, where the short signals were marginally more profitable than the long signals.
OMAXE has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 1 Jan, 2016 to 20 Mar, 2018. Over the last 3 years and 1 month, OMAXE outperformed the NIFTY-50 index on 50% days. Which indicates that on days OMAXE 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 OMAXE was mostly loss making and delivered on average -0.01% per day. It's best return during this period (of +2.17%) was on Wednesday, 12 Dec, 2018. While it's worst loss in the same period (of -0.75%) was on Monday, 12 Nov, 2018. The longest stort-term trends during this period were 4 profitable and losing days. The bullish trend (which returned +2.57%) started on 11 Dec, 2018 and went on till 14 Dec, 2018 while the bearish trend (which returned -1.1%) started on 25 Oct, 2018 and went on till 30 Oct, 2018.
During the last year OMAXE had 3 profitable months and 9 loss making months. OMAXE returned profits in fewer months than NIFTY-50 index. OMAXE delivered +3.13% during it's best month (Jul 2018), which was lower than +6.56% delivered by NIFTY-50 index during it's best month - Jul 2018. OMAXE had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Aug 2018 to Nov 2018) during which period it delivered -6.78%. It is interesting to note that both OMAXE and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
I'd like to live as a poor man with lots of money.
-- Pablo Picasso
OMAXE 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 surge in OMAXE's volatility from 22 Oct, 2018 to 12 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 OMAXE has significant negative skewness in it's return distribution. This indicates that OMAXE is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than OMAXE. Therefore, NIFTY-50 must receive a lower allocation than OMAXE in your portfolio. NIFTY-50 index usually has shorter drawdown period than OMAXE.
Based on your interest in OMAXE you may find it interesting to know that LTI is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.
... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.
All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.
We want to empower investors with all the tools and analysis required by them to make a rational investment decision.
If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute