ORIENT ABRASIVE LTD underperformed broader market on Friday. It delivered -1.26% to close at 27.45. On a day when the overall market breadth was 71%, it closed higher than 56% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.
ORIENTABRA showed a bullish trend over the last 3 months. During this period ORIENTABRA surged by +5.37% and saw a maximum drawdown of -23.92%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in ORIENTABRA till volatility reduces and a clear trend emerges.
ORIENTABRA has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 5 Jan, 2016 to 28 Aug, 2018. Over the last 3 years and 1 month, ORIENTABRA underperformed the NIFTY-50 index on 59% days.
ORIENTABRA returned losses on 60% days in the last three months. During this time, it delivered on average +0.13% per day. It delivered it's best daily return of +9.9%, during this period, on Monday, 29 Oct, 2018. The longest stort-term trends during this period were 7 profitable and losing days. The bullish trend (which returned +40.16%) started on 29 Oct, 2018 and went on till 6 Nov, 2018 while the bearish trend (which returned -20.6%) started on 7 Nov, 2018 and went on till 16 Nov, 2018.
The last 12 months saw ORIENTABRA's investors making profits in 4 months and incurring losses in 8 months. ORIENTABRA was less consistent in delivering monthly returs than NIFTY-50 index. ORIENTABRA was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -19.84% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ORIENTABRA had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered +8.3%. It is interesting to note that both ORIENTABRA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
When you stop chasing the wrong things you give the right things a chance to catch you.
-- Lolly Daskal
ORIENTABRA 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 ORIENTABRA's volatility from 22 Oct, 2018 to 23 Oct, 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 ORIENTABRA has significant negative skewness in it's return distribution. This indicates that ORIENTABRA is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than ORIENTABRA. Therefore, NIFTY-50 must receive a lower allocation than ORIENTABRA in your portfolio. NIFTY-50 index usually has shorter drawdown period than ORIENTABRA.
Based on your interest in ORIENTABRA you may find it interesting to know that BRITANNIA, ~CHEMICALS and ~MKTCAP201TO250 have all shown remarkable performance and qualify to be on every investor's 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