REVATHI EQUIPMENT LTD significantly underperformed today. It lost -1.94% to close at 386.0. During the last week it gained +0.74% and saw a maximum drawdown of -1.94% before bouncing back.
REVATHI is currently in a up trend. Over the last three months Buy-and-Hold has been a better strategy (returning -5.15%) for REVATHI's investors than trading long signals.
REVATHI has been underperforming the NIFTY-50 index in recent time, after having outperformed till 24 Apr, 2017. Over the last 3 years and 1 month, REVATHI underperformed the NIFTY-50 index on 53% days.
REVATHI returned losses on 61% days in the last three months. During this time, it delivered on average -0.06% per day. It delivered it's best daily return of +6.35%, during this period, on Friday, 26 Oct, 2018. There was initially a bearish trend during this period which started on 2 Nov, 2018 and went on till 6 Nov, 2018. The trend delivered -6.25% losses to investors. This was followed by a bullish trend that started on 28 Dec, 2018 and ended on 2 Jan, 2019. This bullish trend delivered +2.24% to investors.
REVATHI had 3 profitable and 9 loss making months over the last year. During the last year, REVATHI underperformed NIFTY-50 index on monthly return basis. REVATHI was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -16.78% compared to -6.42% returned by NIFTY-50 index in Sep 2018. REVATHI had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Aug 2018 to Nov 2018) during which period it delivered -30.39%. It is interesting to note that both REVATHI and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
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REVATHI 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 REVATHI's volatility from 30 Oct, 2018 to 4 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 REVATHI has significant negative skewness in it's return distribution. This indicates that REVATHI is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than REVATHI. Therefore, NIFTY-50 must receive a lower allocation than REVATHI in your portfolio. NIFTY-50 index usually has shorter drawdown period than REVATHI.
On a general note (since you are interested in REVATHI), three large cap instruments that deserve special mention are BRITANNIA, HINDUNILVR and TORNTPHARM. They have all outperformed the market and must be closely watched for investment opportunities.
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