ROYAL ORCHID HOTELS LTD showed marginal outperformance today. It increased by +0.9% to close at 118.25. It's recent 5 day performance has been -2.25%, -3.62%, +0.48%, -2.6% and -0.78%.
ROHLTD showed a bullish trend over the last 3 months. During this period ROHLTD increased by +6.77% and saw a maximum drawdown of -13.95%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in ROHLTD till volatility reduces and a clear trend emerges.
ROHLTD has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 12 Sep, 2016 to 7 May, 2018. Over the last 3 years and 1 month, ROHLTD outperformed the NIFTY-50 index on 46% days. Which indicates that on days ROHLTD 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 ROHLTD delivered losses on 53% days. However, it still managed to end this period in a profit. It's best return during this period (of +11.7%) was on Thursday, 29 Nov, 2018. While it's worst loss in the same period (of -4.43%) was on Monday, 12 Nov, 2018. The longest stort-term trends during this period were 5 profitable and losing days. The bullish trend (which returned +3.47%) started on 4 Jan, 2019 and went on till 10 Jan, 2019 while the bearish trend (which returned -11.9%) started on 30 Nov, 2018 and went on till 6 Dec, 2018.
During the last year ROHLTD had 4 profitable months and 8 loss making months. Profitable number of months of ROHLTD and NIFTY-50 index were the same. ROHLTD significantly outperformed NIFTY-50 index in Apr 2018, when it returned +32.83% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. ROHLTD had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -33.11%. It is interesting to note that both ROHLTD and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
The hardest thing to understand in the world is the income tax.
-- Albert Einstein
ROHLTD 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 surge in ROHLTD's volatility from 21 Nov, 2018 to 18 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 ROHLTD has significant negative skewness in it's return distribution. This indicates that ROHLTD is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than ROHLTD. Therefore, NIFTY-50 must receive a lower allocation than ROHLTD in your portfolio. NIFTY-50 index usually has shorter drawdown period than ROHLTD.
Based on your interest in ROHLTD you may find it interesting to know that LTTS is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.
... 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