Don't consider investing in SILINV now, it is risky at the moment
22 Jan, 201913 min read
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SILINV was among the worst performers today. On a longer term basis, investors in SIL INVESTMENTS LIMITED made +0.2% per day. Tuesday's performance of -2.13% was a significant underperformance compared to it's daily average.
SILINV showed a strong up trend over the last 3 months. During this period SILINV gained +26.08% and saw a maximum drawdown of -15.77%. There were 3 long signals during this period that returned a cumulative of +5.08% to investors.
SILINV has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, SILINV outperformed the NIFTY-50 index on 46% days. Which indicates that on days SILINV outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
SILINV returned losses on 58% days in the last three months. During this time, it delivered on average +0.43% per day. It delivered it's best daily return of +20.0%, during this period, on Monday, 7 Jan, 2019. There was initially a bearish trend during this period which started on 3 Dec, 2018 and went on till 10 Dec, 2018. The trend delivered -7.32% losses to investors. This was followed by a bullish trend that started on 11 Dec, 2018 and ended on 17 Dec, 2018. This bullish trend delivered +11.93% to investors.
On monthly basis, SILINV delivered profits in more months over the last year, than losses. SILINV delivered profits in more months than NIFTY-50 index. SILINV was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -40.73% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SILINV had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Nov 2018 to Jan 2019) during which period it delivered +19.85%. It is interesting to note that both SILINV and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
If you totally want to reduce risk, take no risk. Bury the money. Then you've got no risk at all.
-- Don Connelly
SILINV 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 SILINV's volatility from 23 Oct, 2018 to 7 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 SILINV has significant negative skewness in it's return distribution. This indicates that SILINV is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than SILINV. Therefore, NIFTY-50 must receive a lower allocation than SILINV in your portfolio. NIFTY-50 index usually has shorter drawdown period than SILINV.
Based on your interest in SILINV you may find it interesting to know that BAJFINANCE and BRITANNIA have both shown remarkable performance and deserve to be on every investors' watchlist.
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