RALLIS INDIA LTD delivered massive losses on Friday. It fell by -5.24% to close at 164.4. It is currently trading -40% below it's 52 week high of 274.1.
Buy-and-Hold investors in RALLIS experienced a maximum drawdown of -14.02% over the last three months. It fell by -12.34% 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 +11.18%.
RALLIS has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 31 Mar, 2017 to 29 Nov, 2018. Over the last 3 years and 1 month, RALLIS underperformed the NIFTY-50 index on 51% days.
During the last three months RALLIS was mostly loss making and delivered on average -0.19% per day. It's best return during this period (of +3.95%) was on Friday, 28 Dec, 2018. While it's worst loss in the same period (of -5.24%) was on Friday, 18 Jan, 2019. The longest stort-term trend during this period was 5 losing days, which started on 22 Oct, 2018 and ended on 26 Oct, 2018. This bearish trend lost -11.52% of investor capital.
During the last year RALLIS had 4 profitable months and 8 loss making months. RALLIS returned profits in fewer months than NIFTY-50 index. RALLIS was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -13.0% compared to -6.42% returned by NIFTY-50 index in Sep 2018. RALLIS had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Apr 2018 to Jun 2018) during which period it delivered -20.38%.
"Finance is wholly different from the rest the economy.
RALLIS 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 RALLIS's volatility from 19 Oct, 2018 to 17 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 RALLIS has significant negative skewness in it's return distribution. This indicates that RALLIS is very risky for short-term investment and can significantly underperform for long durations.
RALLIS has more chance of extreme outcomes than the NIFTY-50 index. Therefore, RALLIS must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than RALLIS.
Based on your interest in RALLIS you may find it interesting to know that SHK has delivered similar performance as RALLIS and can be considered as an alternative investment candidate (to RALLIS).
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