139.25 +2.81 (+2.01%) Buy

Want to invest in PONNIERODE? Consider as it was among the best performers

13 min read

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.

[Themes containing PONNIERODE]

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.

Based on your interest in PONNIERODE you may find it interesting to know that CUB and SPLIL have both shown remarkable performance this year and deserve to be on every investors' watchlist.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
If you liked what you read here ...

... 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
Share with friends   WhatsApp   Facebook   Twitter