Search for alternative investments is on for SEQUENT investors as it performed worse than the broader market
23 Jan, 201913 min read
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SEQUENT SCIENTIFIC LTD. significantly underperformed today. It returned -2.53% to close at 82.85. During the last week it gained +1.22% and saw a maximum drawdown of -4.88% before bouncing back.
SEQUENT is currently in a up trend. Over the last three months 2 bullish signals in SEQUENT have generated a profit of +33.51% for investors.
SEQUENT has been outperforming the NIFTY-50 index in recent time. Over the last 2 years 10 months and 13 days, SEQUENT underperformed the NIFTY-50 index on 54% days.
SEQUENT was profitable on 55% days in the last three months. During this time, it delivered on average +0.96% per day. It delivered it's best daily return of +10.42%, during this period, on Monday, 14 Jan, 2019. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 13 Nov, 2018. The bullish trend returned +41.72% to investors. This was followed by a bearish trend that started on 18 Dec, 2018 and ended on 26 Dec, 2018. This bearish trend lost -5.91% of investor capital.
On monthly basis, SEQUENT delivered losses in more months over the last year, than profits. SEQUENT delivered profits less regularly than NIFTY-50 index. SEQUENT significantly outperformed NIFTY-50 index in Nov 2018, when it returned +46.68% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. SEQUENT 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 -39.6%. It is interesting to note that both SEQUENT and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
It takes as much energy to wish as it does to plan.
-- Eleanor Roosevelt
SEQUENT 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 SEQUENT's volatility from 24 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 SEQUENT has significant negative skewness in it's return distribution. This indicates that SEQUENT is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than SEQUENT. Therefore, NIFTY-50 must receive a lower allocation than SEQUENT in your portfolio. NIFTY-50 index usually has shorter drawdown period than SEQUENT.
On a general note (since you are interested in SEQUENT), two mid cap instruments that deserve special mention are BATAINDIA and LTTS. They have significantly outperformed the overall market.
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