7.6 -0.29 (-3.8%) Sell

Want to invest in RUCHISOYA? Avoid as it delivered massive losses

13 min read

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.

[Themes containing RUCHISOYA]

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.
-- Virgil

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.

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