ONMOBILE GLOBAL LTD. showed marginal outperformance on Friday. It fell by 0.0% to close at 37.55. On a day when the overall market breadth was 71%, it closed higher than 64% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.
ONMOBILE showed a strong bullish trend over the last 3 months. During this period ONMOBILE increased by +11.42% and saw a maximum drawdown of -17.79%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in ONMOBILE till volatility reduces and a clear trend emerges.
ONMOBILE has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 2 Feb, 2016 to 28 Aug, 2018. Over the last 3 years and 1 month, ONMOBILE underperformed the NIFTY-50 index on 57% days.
During the last three months ONMOBILE delivered losses on 56% days. However, it still managed to end this period in a profit. It's best return during this period (of +13.95%) was on Monday, 24 Dec, 2018. While it's worst loss in the same period (of -15.64%) was on Wednesday, 26 Dec, 2018. The longest stort-term trend during this period was 9 losing days, which started on 26 Nov, 2018 and ended on 6 Dec, 2018. This bearish trend lost -12.1% of investor capital.
During the last year ONMOBILE had 6 profitable months and 6 loss making months. ONMOBILE returned profits in more months than NIFTY-50 index. ONMOBILE was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -19.07% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ONMOBILE had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Feb 2018 to May 2018) during which period it delivered -40.85%. It is interesting to note that both ONMOBILE and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Success seems to be connected with action. Successful people keep moving. They make mistakes, but they don't quit.
-- Conrad Hilton
ONMOBILE 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 surge in ONMOBILE's volatility from 5 Dec, 2018 to 24 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 ONMOBILE has significant negative skewness in it's return distribution. This indicates that ONMOBILE is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than ONMOBILE. Therefore, NIFTY-50 must receive a lower allocation than ONMOBILE in your portfolio. NIFTY-50 index usually has shorter drawdown period than ONMOBILE.
Based on your interest in ONMOBILE you may find it interesting to know that NIITTECH is a small cap that has shown remarkable performance and deserves to be on every investors' watchlist.
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