THE RUBY MILLS LTD

302.4 -8.6 (-2.84%) Buy

Don't consider investing in RUBYMILLS now, it is risky at the moment

13 min read

THE RUBY MILLS LTD has destroyed investor wealth on Wednesday. It returned -2.84% to close at 302.4. On a day when the overall market breadth was 70%, it closed higher than 77% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0084%.

[Themes containing RUBYMILLS]

RUBYMILLS showed a strong up trend over the last 3 months. During this period RUBYMILLS gained +17.62% and saw a maximum drawdown of -13.94%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in RUBYMILLS till volatility reduces and a clear trend emerges.

Trend

RUBYMILLS has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, RUBYMILLS underperformed the NIFTY-50 index on 55% days.

RUBYMILLS returned losses on 53% days in the last three months. During this time, it delivered on average +0.35% per day. It delivered it's best daily return of +19.98%, during this period, on Wednesday, 9 Jan, 2019. There was initially a bearish trend during this period which started on 26 Nov, 2018 and went on till 30 Nov, 2018. The trend delivered -5.43% losses to investors. This was followed by a bullish trend that started on 11 Dec, 2018 and ended on 14 Dec, 2018. This bullish trend delivered +4.33% to investors.

On monthly basis, RUBYMILLS delivered losses in more months over the last year, than profits. RUBYMILLS delivered profits less regularly than NIFTY-50 index. RUBYMILLS significantly outperformed NIFTY-50 index in Apr 2018, when it returned +31.78% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. RUBYMILLS 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 -29.3%. It is interesting to note that both RUBYMILLS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Wealth is the ability to fully experience life.
-- Henry David Thoreau

RUBYMILLS 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 RUBYMILLS's volatility from 24 Oct, 2018 to 27 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 RUBYMILLS has significant negative skewness in it's return distribution. This indicates that RUBYMILLS is very risky for short-term investment and can significantly underperform for long durations.

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

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

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