RUCHI SOYA INDUSTRIES LTD delivered massive losses on Friday. It returned -3.8% to close at 7.6. It is currently trading -60% below it's 52 week high of 19.45.
RUCHISOYA showed a strong up trend over the last 3 months. During this period RUCHISOYA returned +28.81% and saw a maximum drawdown of -15.08%. There was a long signal during this period which returned +24.59%.
RUCHISOYA has been underperforming the NIFTY-50 index in recent time, after having outperformed till 31 Mar, 2016. Over the last 3 years and 1 month, RUCHISOYA underperformed the NIFTY-50 index on 57% days.
During the last three months RUCHISOYA delivered losses on 52% days. However, it still managed to end this period in a profit. It's best return during this period (of +9.68%) was on Monday, 24 Dec, 2018. While it's worst loss in the same period (of -6.11%) was on Monday, 10 Dec, 2018. There was initially a bearish trend during this period which started on 23 Oct, 2018 and went on till 25 Oct, 2018. The trend delivered -13.29% losses to investors. This was followed by a bullish trend that started on 12 Nov, 2018 and ended on 19 Nov, 2018. This bullish trend delivered +17.38% to investors.
On monthly basis, RUCHISOYA delivered losses in more months over the last year, than profits. RUCHISOYA delivered profits less regularly than NIFTY-50 index. RUCHISOYA significantly outperformed NIFTY-50 index in Dec 2018, when it returned +46.72% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. RUCHISOYA had a longer winning streak of losing months than NIFTY-50 index. It went down in 8 straight months (from Mar 2018 to Oct 2018) during which period it delivered -109.06%.
Fortune sides with him who dares.
RUCHISOYA 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 surge in RUCHISOYA's volatility from 25 Oct, 2018 to 11 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 RUCHISOYA has significant negative skewness in it's return distribution. This indicates that RUCHISOYA is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than RUCHISOYA. Therefore, NIFTY-50 must receive a lower allocation than RUCHISOYA in your portfolio. NIFTY-50 index usually has shorter drawdown period than RUCHISOYA.
On a general note (since you are interested in RUCHISOYA), two instruments that have been extremely volatile in recent times are NIFTY50-DIV-POINT and ~HOMEAPPLIANCES. Investors in these instruments should consider reducing their exposure (to NIFTY50-DIV-POINT and ~HOMEAPPLIANCES) and diversifying their portfolios.
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