RELIANCE COMMUNICATIONS L has destroyed investor wealth today. It fell by -1.48% to close at 13.35. It's recent 5 day performance has been -1.81%, +2.6%, +0.37%, -2.19% and -1.08%.
RCOM is currently in a bearish trend. Over the last three months Buy-and-Hold has been a better strategy (returning +19.73%) for RCOM's investors than shorting it.
RCOM has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 1 Jan, 2016 to 28 Aug, 2018. Over the last 3 years and 1 month, RCOM underperformed the NIFTY-50 index on 56% days.
During the last three months RCOM delivered losses on 56% days. However, it still managed to end this period in a profit. It's best return during this period (of +16.49%) was on Monday, 3 Dec, 2018. While it's worst loss in the same period (of -9.52%) was on Wednesday, 19 Dec, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 29 Oct, 2018 and went on till 5 Nov, 2018. This bullish trend returned +36.06% to investors.
During the last year RCOM had 6 profitable months and 6 loss making months. RCOM returned profits in more months than NIFTY-50 index. RCOM was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -34.79% compared to -6.42% returned by NIFTY-50 index in Sep 2018. RCOM 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 +19.78%.
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RCOM 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 RCOM's volatility from 29 Oct, 2018 to 15 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 RCOM has significant negative skewness in it's return distribution. This indicates that RCOM is very risky for short-term investment and can significantly underperform for long durations.
Investors trading in RCOM 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 RCOM. Therefore, NIFTY-50 must receive a lower allocation than RCOM in your portfolio. NIFTY-50 index usually has shorter drawdown period than RCOM.
Based on your interest in RCOM you may find it interesting to know that RESPONIND, IGARASHI and VINATIORGA are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.
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