RELIANCE INDUSTRIAL INFRA

338.75 +2.11 (+0.62%) Sell

Want to invest in RIIL? Consider as it performed better than the broader market

13 min read

RELIANCE INDUSTRIAL INFRA performed better than the broader market today. It returned +0.62% to close at 338.75. It's recent 5 day performance has been -0.53%, +0.12%, +2.63%, -1.83% and -0.36%.

[Themes containing RIIL]

RIIL showed a up trend over the last 3 months. During this period RIIL returned +3.29% and saw a maximum drawdown of -14.69%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in RIIL till volatility reduces and a clear trend emerges.

Trend

RIIL has been underperforming the NIFTY-50 index in recent time, after having outperformed till 4 Jan, 2016. Over the last 3 years and 1 month, RIIL underperformed the NIFTY-50 index on 56% days.

During the last three months RIIL delivered losses on 54% days. However, it still managed to end this period in a profit. It's best return during this period (of +4.54%) was on Wednesday, 19 Dec, 2018. While it's worst loss in the same period (of -3.3%) was on Monday, 10 Dec, 2018. There was initially a bearish trend during this period which started on 3 Dec, 2018 and went on till 10 Dec, 2018. The trend delivered -10.63% losses to investors. This was followed by a bullish trend that started on 11 Dec, 2018 and ended on 19 Dec, 2018. This bullish trend delivered +12.42% to investors.

On monthly basis, RIIL delivered profits and losses in equal number of months. RIIL delivered profits in more months than NIFTY-50 index. RIIL was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -28.13% compared to -6.42% returned by NIFTY-50 index in Sep 2018. RIIL had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Feb 2018 to May 2018) during which period it delivered -30.5%. It is interesting to note that both RIIL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Money is a terrible master but an excellent servant.
-- P.T. Barnum

RIIL is becoming less 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 RIIL's volatility from 22 Oct, 2018 to 4 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 RIIL has significant negative skewness in it's return distribution. This indicates that RIIL is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in RIIL), LTI has performed really well this year and deserves to be closely tracked for investment opportunities.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter