PONNIERODE was among the best performers today. On a longer term basis, investors in PONNIE SUGARS (ERODE) LTD made +0.07% per day. Tuesday's performance of +2.01% was a significant outperformance compared to it's daily average.
PONNIERODE showed a strong up trend over the last 3 months. During this period PONNIERODE returned +17.02% and saw a maximum drawdown of -11.86%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in PONNIERODE till volatility reduces and a clear trend emerges.
PONNIERODE has been underperforming the NIFTY-50 index in recent time, after having outperformed till 25 Jul, 2016. Over the last 3 years and 1 month, PONNIERODE underperformed the NIFTY-50 index on 54% days.
During the last three months PONNIERODE delivered losses on 53% days. However, it still managed to end this period in a profit. It's best return during this period (of +11.44%) was on Monday, 12 Nov, 2018. While it's worst loss in the same period (of -4.57%) was on Tuesday, 13 Nov, 2018. There was initially a bearish trend during this period which started on 5 Dec, 2018 and went on till 10 Dec, 2018. The trend delivered -6.77% losses to investors. This was followed by a bullish trend that started on 11 Dec, 2018 and ended on 14 Dec, 2018. This bullish trend delivered +4.17% to investors.
On monthly basis, PONNIERODE delivered losses in more months over the last year, than profits. PONNIERODE delivered profits less regularly than NIFTY-50 index. PONNIERODE significantly outperformed NIFTY-50 index in Oct 2018, when it returned +14.24% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. PONNIERODE had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -40.97%. It is interesting to note that both PONNIERODE and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.
-- T.T. Munger
PONNIERODE 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 PONNIERODE's volatility from 23 Oct, 2018 to 29 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 PONNIERODE has significant negative skewness in it's return distribution. This indicates that PONNIERODE is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than PONNIERODE. Therefore, NIFTY-50 must receive a lower allocation than PONNIERODE in your portfolio. NIFTY-50 index usually has shorter drawdown period than PONNIERODE.
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