25.0 +0.46 (+1.83%) Sell

RELIGARE investors update their stop-losses higher

13 min read

RELIGARE outperformed today. On a longer term basis, investors in RELIGARE ENTER. LTD. made -0.19% per day. Wednesday's performance of +1.83% was a outperformance compared to it's daily average.

[Themes containing RELIGARE]

Buy-and-Hold investors in RELIGARE experienced a maximum drawdown of -30.16% over the last three months. It delivered -21.75% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +14.91%.


RELIGARE has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 12 Feb, 2016 to 28 Aug, 2018. Over the last 3 years and 1 month, RELIGARE underperformed the NIFTY-50 index on 55% days.

RELIGARE returned losses on 72% days in the last three months. During this time, it delivered on average -0.36% per day. It delivered it's best daily return of +7.4%, during this period, on Friday, 2 Nov, 2018. The longest stort-term trend during this period was 5 losing days, which started on 26 Nov, 2018 and ended on 30 Nov, 2018. This bearish trend lost -3.16% of investor capital.

The last 12 months saw RELIGARE's investors making profits in 5 months and incurring losses in 7 months. During the last year, RELIGARE delivered profits in more months than NIFTY-50 index. RELIGARE was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -34.14% compared to -6.42% returned by NIFTY-50 index in Sep 2018. RELIGARE and NIFTY-50 index, both had periods of 2 consecutive losing months.

"The way to become rich is to put all your eggs in one basket and then watch that basket.

RELIGARE is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in RELIGARE's volatility from 24 Oct, 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 RELIGARE has significant negative skewness in it's return distribution. This indicates that RELIGARE is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in RELIGARE you may find it interesting to know that IEX and TIDEWATER are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).

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