622.85 -4.22 (-0.68%) Sell

Waiting to invest in RAMCOCEM? Look for alternatives because it trailed the broader market

13 min read

RAMCOCEM trailed the broader market today. On a longer term basis, investors in THE RAMCO CEMENTS LIMITED made +0.09% per day. Friday's performance of -0.68% was a underperformance compared to it's daily average.

[Themes containing RAMCOCEM]

RAMCOCEM showed a bullish trend over the last 3 months. During this period RAMCOCEM delivered +7.89% and saw a maximum drawdown of -8.28%. There were 2 long signals during this period that returned a cumulative of +0.73% to investors.


RAMCOCEM has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 4 Mar, 2016 to 24 Apr, 2018. Over the last 3 years and 1 month, RAMCOCEM outperformed the NIFTY-50 index on 47% days. Which indicates that on days RAMCOCEM outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

During the last three months RAMCOCEM delivered losses on 53% days. However, it still managed to end this period in a profit. It's best return during this period (of +6.56%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -4.11%) was on Friday, 21 Dec, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 11 Dec, 2018 and went on till 17 Dec, 2018. This bullish trend returned +10.59% to investors.

The last 12 months saw RAMCOCEM's investors making profits in 4 months and incurring losses in 8 months. RAMCOCEM was less consistent in delivering monthly returs than NIFTY-50 index. RAMCOCEM significantly outperformed NIFTY-50 index in Apr 2018, when it returned +11.18% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. RAMCOCEM had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -18.83%. It is interesting to note that both RAMCOCEM and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

If you totally want to reduce risk, take no risk. Bury the money. Then you've got no risk at all.
-- Don Connelly

RAMCOCEM 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 RAMCOCEM's volatility from 30 Oct, 2018 to 18 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 RAMCOCEM has significant negative skewness in it's return distribution. This indicates that RAMCOCEM is very risky for short-term investment and can significantly underperform for long durations.

Investors trading in RAMCOCEM derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in RAMCOCEM you may find it interesting to know that SRIPIPES, HATSUN and NIFTY50-DIV-POINT are all extremely risky investment candidates that must be evaluated carefully. Investors with low risk profile are better off avoiding them till their performance becomes more consistent.

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