SKFINDIA investors looking to cut their losses short
18 Jan, 201913 min read
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SKF INDIA LTD ranked worse than it's peers today. It fell by -0.06% to close at 1929.55. It's recent 5 day performance has been -0.37%, +0.56%, +0.52%, -1.17% and +0.23%.
SKFINDIA is currently in a bullish trend. The current bullish signal has generated a profit of +4.97% for SKFINDIA's investors in the last three months.
SKFINDIA has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 20 Jun, 2016 to 29 Dec, 2017. Over the last 3 years and 1 month, SKFINDIA outperformed the NIFTY-50 index on 49% days. Which indicates that on days SKFINDIA outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
SKFINDIA was profitable on 55% days in the last three months. During this time, it delivered on average +0.21% per day. It delivered it's best daily return of +4.46%, during this period, on Thursday, 25 Oct, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 29 Nov, 2018 and went on till 5 Dec, 2018. This bullish trend returned +3.35% to investors.
During the last year SKFINDIA had 7 profitable months and 5 loss making months. SKFINDIA returned profits in more months than NIFTY-50 index. SKFINDIA significantly outperformed NIFTY-50 index in Nov 2018, when it returned +6.87% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. SKFINDIA had a longer winning streak of profitable months than NIFTY-50 index. It went up in 4 straight months (from Oct 2018 to Jan 2019) during which period it delivered +13.59%. It is interesting to note that both SKFINDIA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Be quick in cutting your loses but not profits
-- Abhishek Shukla
SKFINDIA is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in SKFINDIA's volatility from 19 Oct, 2018 to 11 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 SKFINDIA has significant negative skewness in it's return distribution. This indicates that SKFINDIA is very risky for short-term investment and can significantly underperform for long durations.
SKFINDIA has more chance of extreme outcomes than the NIFTY-50 index. Therefore, SKFINDIA must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than SKFINDIA.
Based on your interest in SKFINDIA you may find it interesting to know that LTI, CUB and BATAINDIA are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.
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