SARLA PERF. FIBERS LTD underperformed broader market on Wednesday. It lost -0.18% to close at 28.15 which is it's 52 week low, down -57% from it's 52 week high.
Buy-and-Hold investors in SARLAPOLY experienced a maximum drawdown of -14.7% over the last three months. It lost -9.78% 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 +0.71%.
SARLAPOLY 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, SARLAPOLY underperformed the NIFTY-50 index on 56% days.
During the last three months SARLAPOLY was mostly loss making and delivered on average -0.15% per day. It's best return during this period (of +4.13%) was on Thursday, 20 Dec, 2018. While it's worst loss in the same period (of -3.59%) was on Tuesday, 22 Jan, 2019. There was initially a bullish trend during this period which started on 18 Dec, 2018 and went on till 21 Dec, 2018. The bullish trend returned +7.94% to investors. This was followed by a bearish trend that started on 17 Jan, 2019 and ended on 23 Jan, 2019. This bearish trend lost -6.13% of investor capital.
SARLAPOLY had 1 profitable and 11 loss making months over the last year. During the last year, SARLAPOLY underperformed NIFTY-50 index on monthly return basis. SARLAPOLY was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -12.87% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SARLAPOLY had a longer winning streak of losing months than NIFTY-50 index. It went down in 8 straight months (from Feb 2018 to Sep 2018) during which period it delivered -61.36%. It is interesting to note that both SARLAPOLY and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
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SARLAPOLY 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 SARLAPOLY's volatility from 27 Dec, 2018 to 21 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 SARLAPOLY has significant negative skewness in it's return distribution. This indicates that SARLAPOLY is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than SARLAPOLY. Therefore, NIFTY-50 must receive a lower allocation than SARLAPOLY in your portfolio. NIFTY-50 index usually has shorter drawdown period than SARLAPOLY.
On a general note (since you are interested in SARLAPOLY), two large cap instruments that deserve special mention are HINDUNILVR and BAJAJFINSV. They have significantly outperformed the overall market.
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