SADBHAV investors treading cautiously as performance is muted

SADBHAV ENGINEERING LTD has destroyed investor wealth today. It returned -4.13% to close at 206.85. During the last week it returned -5.57% and saw a maximum drawdown of -6.11% before bouncing back.

[Themes containing SADBHAV]

Buy-and-Hold investors in SADBHAV experienced a maximum drawdown of -15.9% over the last three months. It returned -9.67% during this down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +5.24%.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

SADBHAV has been underperforming the NIFTY-50 index in recent time, after having outperformed till 4 Jan, 2016. Over the last 3 years and 1 month, SADBHAV underperformed the NIFTY-50 index on 52% days.

During the last three months SADBHAV delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +4.62%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -5.0%) was on Tuesday, 23 Oct, 2018. There was initially a bearish trend during this period which started on 22 Oct, 2018 and went on till 29 Oct, 2018. The trend delivered -16.95% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 12 Nov, 2018. This bullish trend delivered +13.71% to investors.

On monthly basis, SADBHAV delivered losses in more months over the last year, than profits. SADBHAV delivered profits less regularly than NIFTY-50 index. SADBHAV was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -23.85% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SADBHAV had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from Feb 2018 to Jul 2018) during which period it delivered -36.82%.

"I'm a big advocate of financial intelligence.

SADBHAV 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 SADBHAV's volatility from 23 Oct, 2018 to 2 Jan, 2019. 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 SADBHAV has significant negative skewness in it's return distribution. This indicates that SADBHAV is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in SADBHAV), three instruments that are extremely volatile are IEX, TIDEWATER and NIFTY50-DIV-POINT. They must all be evaluated prudently and investors are better off avoiding them at the moment.