HUHTAMAKI PPL LIMITED

176.05 -1.44 (-0.82%) Sell

PAPERPROD investors looking to cut their losses short

13 min read

HUHTAMAKI PPL LIMITED showed weakness today. It delivered -0.82% to close at 176.05. During the last week it delivered -4.42% and saw a maximum drawdown of -4.42%.

[Themes containing PAPERPROD]

Buy-and-Hold investors in PAPERPROD experienced a maximum drawdown of -20.98% over the last three months. It delivered -15.36% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +5.67%.

Trend

PAPERPROD has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 27 Jul, 2016 to 22 Jan, 2019. One must note that PAPERPROD is currently at it's worst performance to the NIFTY-50 index which makes it a bad investment candidate. Over the last 3 years and 1 month, PAPERPROD underperformed the NIFTY-50 index on 54% days.

PAPERPROD returned losses on 62% days in the last three months. During this time, it delivered on average -0.24% per day. It delivered it's best daily return of +8.02%, during this period, on Thursday, 22 Nov, 2018. The longest stort-term trend during this period was 5 losing days, which started on 16 Jan, 2019 and ended on 22 Jan, 2019. This bearish trend lost -5.62% of investor capital.

The last 12 months saw PAPERPROD's investors making profits in 3 months and incurring losses in 9 months. PAPERPROD was less consistent in delivering monthly returs than NIFTY-50 index. PAPERPROD was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -14.1% compared to -6.42% returned by NIFTY-50 index in Sep 2018. PAPERPROD had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from Aug 2018 to Jan 2019) during which period it delivered -38.59%. It is interesting to note that both PAPERPROD and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Money is a guarantee that we may have what we want in the future. Though we need nothing at the moment it insures the possibility of satisfying a new desire when it arises.
-- Aristotle

PAPERPROD 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 fall in PAPERPROD's volatility from 22 Nov, 2018 to 2 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 PAPERPROD has significant negative skewness in it's return distribution. This indicates that PAPERPROD is very risky for short-term investment and can significantly underperform for long durations.

NIFTY-50 index has more chance of extreme outcomes than PAPERPROD. Therefore, NIFTY-50 must receive a lower allocation than PAPERPROD in your portfolio. NIFTY-50 index usually has shorter drawdown period than PAPERPROD.

On a general note (since you are interested in PAPERPROD), two mid cap instruments that deserve special mention are CUB and LTI. They have significantly outperformed the overall market.

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