RAMKY INFRA LTD has destroyed investor wealth on Friday. It fell by -3.1% to close at 142.0. On a day when the overall market breadth was 71%, it closed higher than 73% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.
RAMKY showed a strong bullish trend over the last 3 months. During this period RAMKY increased by +12.16% and saw a maximum drawdown of -16.35%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in RAMKY till volatility reduces and a clear trend emerges.
RAMKY has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 4 Feb, 2016 to 5 Dec, 2017. Over the last 3 years and 1 month, RAMKY outperformed the NIFTY-50 index on 46% days. Which indicates that on days RAMKY 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 RAMKY delivered losses on 53% days. However, it still managed to end this period in a profit. It's best return during this period (of +8.84%) was on Friday, 2 Nov, 2018. While it's worst loss in the same period (of -4.99%) was on Tuesday, 23 Oct, 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 +16.86% to investors.
During the last year RAMKY had 6 profitable months and 6 loss making months. RAMKY returned profits in more months than NIFTY-50 index. RAMKY was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -23.08% compared to -6.42% returned by NIFTY-50 index in Sep 2018. RAMKY had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Jun 2018 to Aug 2018) during which period it delivered +28.23%.
Many of life's failures are people who did not realize how close they were to success when they gave up.
-- Thomas Edison
RAMKY 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 surge in RAMKY's volatility from 23 Oct, 2018 to 30 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 RAMKY has significant negative skewness in it's return distribution. This indicates that RAMKY is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than RAMKY. Therefore, NIFTY-50 must receive a lower allocation than RAMKY in your portfolio. NIFTY-50 index usually has shorter drawdown period than RAMKY.
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