R. S. SOFTWARE (INDIA) LI performed worse than the broader market on Friday. It returned -0.87% to close at 34.0. It is currently trading -62% below it's 52 week high of 91.75.
RSSOFTWARE is currently in a up trend. Over the last three months Buy-and-Hold has been a better strategy (returning +16.64%) for RSSOFTWARE's investors than trading long signals.
RSSOFTWARE has been underperforming the NIFTY-50 index in recent time, after having outperformed till 5 Jan, 2016. Over the last 3 years and 1 month, RSSOFTWARE underperformed the NIFTY-50 index on 59% days.
RSSOFTWARE returned losses on 67% days in the last three months. During this time, it delivered on average +0.33% per day. It delivered it's best daily return of +19.86%, during this period, on Tuesday, 4 Dec, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 1 Nov, 2018. The bullish trend returned +11.0% to investors. This was followed by a bearish trend that started on 9 Nov, 2018 and ended on 16 Nov, 2018. This bearish trend lost -8.4% of investor capital.
On monthly basis, RSSOFTWARE delivered losses in more months over the last year, than profits. RSSOFTWARE delivered profits less regularly than NIFTY-50 index. RSSOFTWARE was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -32.99% compared to -6.42% returned by NIFTY-50 index in Sep 2018. RSSOFTWARE had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -66.41%. It is interesting to note that both RSSOFTWARE and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
An investment in knowledge pays the best interest.
-- Benjamin Franklin
RSSOFTWARE 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 RSSOFTWARE's volatility from 22 Oct, 2018 to 3 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 RSSOFTWARE has significant negative skewness in it's return distribution. This indicates that RSSOFTWARE is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than RSSOFTWARE. Therefore, NIFTY-50 must receive a lower allocation than RSSOFTWARE in your portfolio. NIFTY-50 index usually has shorter drawdown period than RSSOFTWARE.
On a general note (since you are interested in RSSOFTWARE), three instruments that are extremely volatile are SRIPIPES, IGARASHI and NIFTY50-DIV-POINT. They must all be evaluated prudently and investors are better off avoiding them at the moment.
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