RAMCO INDUSTRIES LIMITED has destroyed investor wealth on Friday. It fell by -2.22% to close at 215.7. On a day when the overall market breadth was 71%, it closed higher than 83% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.
Buy-and-Hold investors in RAMCOIND experienced a maximum drawdown of -7.29% over the last three months. It increased by +13.2% during this strong bullish trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.
RAMCOIND has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 17 Mar, 2016 to 15 Jan, 2018. Over the last 3 years and 1 month, RAMCOIND outperformed the NIFTY-50 index on 44% days. Which indicates that on days RAMCOIND 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 RAMCOIND delivered losses on 55% days. However, it still managed to end this period in a profit. It's best return during this period (of +10.58%) was on Friday, 9 Nov, 2018. While it's worst loss in the same period (of -3.0%) was on Tuesday, 18 Dec, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 2 Nov, 2018 and went on till 12 Nov, 2018. This bullish trend returned +18.49% to investors.
During the last year RAMCOIND had 5 profitable months and 7 loss making months. Profitable number of months of RAMCOIND and NIFTY-50 index were the same. RAMCOIND was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -20.13% compared to -6.42% returned by NIFTY-50 index in Sep 2018. RAMCOIND and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both RAMCOIND and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
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RAMCOIND 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 RAMCOIND's volatility from 12 Nov, 2018 to 7 Dec, 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 RAMCOIND has significant negative skewness in it's return distribution. This indicates that RAMCOIND is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than RAMCOIND. Therefore, NIFTY-50 must receive a lower allocation than RAMCOIND in your portfolio. NIFTY-50 index usually has shorter drawdown period than RAMCOIND.
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