REMSONS INDUSTRIES LTD delivered good returns on Friday. It grew by +9.38% to close at 120.05. It is currently trading +76% above it's 52 week low of 68.05 and is down only -14% from it's 52 week high.
REMSONSIND showed a down trend over the last 3 months. During this period REMSONSIND lost -6.17% and saw a maximum drawdown of -24.19%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in REMSONSIND till volatility reduces and a clear trend emerges.
REMSONSIND has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, REMSONSIND outperformed the NIFTY-50 index on 48% days. Which indicates that on days REMSONSIND 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 REMSONSIND was mostly loss making and delivered on average -0.05% per day. It's best return during this period (of +9.38%) was on Friday, 18 Jan, 2019. While it's worst loss in the same period (of -5.67%) was on Wednesday, 24 Oct, 2018. There was initially a bearish trend during this period which started on 22 Oct, 2018 and went on till 26 Oct, 2018. The trend delivered -22.24% losses to investors. This was followed by a bullish trend that started on 26 Nov, 2018 and ended on 28 Nov, 2018. This bullish trend delivered +1.0% to investors.
REMSONSIND had 5 profitable and 7 loss making months over the last year. During the last year, REMSONSIND underperformed NIFTY-50 index on monthly return basis. REMSONSIND significantly outperformed NIFTY-50 index in Aug 2018, when it returned +34.47% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. REMSONSIND had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered -15.4%. It is interesting to note that both REMSONSIND and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Courage is being scared to death, but saddling up anyway.
-- John Wayne
REMSONSIND is becoming more volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant fall in REMSONSIND's volatility from 19 Oct, 2018 to 29 Nov, 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 REMSONSIND 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.
REMSONSIND has more chance of extreme outcomes than the NIFTY-50 index. Therefore, REMSONSIND must receive a lower allocation than NIFTY-50 in your portfolio. REMSONSIND usually has shorter drawdown period than the NIFTY-50 index.
On a general note (since you are interested in REMSONSIND), two instruments that have been extremely volatile in recent times are IGARASHI and HATSUN. Investors in these instruments should consider reducing their exposure (to IGARASHI and HATSUN) and diversifying their portfolios.
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