RAYMOND LTD underperformed broader market on Friday. It fell by -0.31% to close at 806.95. It is currently trading -28% below it's 52 week high of 1129.4.
Buy-and-Hold investors in RAYMOND experienced a maximum drawdown of -7.54% over the last three months. It increased by +26.06% 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. The net profit from Long signals was +10.87%.
RAYMOND has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 23 Aug, 2016 to 25 Apr, 2018. Over the last 3 years and 1 month, RAYMOND outperformed the NIFTY-50 index on 49% days. Which indicates that on days RAYMOND 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 RAYMOND was mostly profitable and delivered on average +0.4% per day. It's best return during this period (of +11.95%) was on Friday, 26 Oct, 2018. While it's worst loss in the same period (of -3.86%) was on Thursday, 25 Oct, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 15 Nov, 2018 and went on till 22 Nov, 2018. This bullish trend returned +6.36% to investors.
During the last year RAYMOND had 5 profitable months and 7 loss making months. Profitable number of months of RAYMOND and NIFTY-50 index were the same. RAYMOND was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -21.33% compared to -6.42% returned by NIFTY-50 index in Sep 2018. RAYMOND had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered +24.48%. It is interesting to note that both RAYMOND and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
The difference between playing the stock market and the horses is that one of the horses must win.
-- Joey Adams
RAYMOND 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 RAYMOND's volatility from 26 Oct, 2018 to 16 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 RAYMOND has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.
Investors trading in RAYMOND derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.
NIFTY-50 index has more chance of extreme outcomes than RAYMOND. Therefore, NIFTY-50 must receive a lower allocation than RAYMOND in your portfolio. NIFTY-50 index usually has shorter drawdown period than RAYMOND.
Based on your interest in RAYMOND you may find it interesting to know that ~MKTCAP201TO250, ~CHEMICALS and BRITANNIA have all shown remarkable performance and qualify to be on every investor's watchlist.
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