502.25 -1.64 (-0.33%) Buy

Search for alternative investments is on for SOBHA investors as it underperforms broader market

13 min read

SOBHA LIMITED underperformed on Friday. It lost -0.33% to close at 502.25. It is currently trading +28% above it's 52 week low of 389.9 and is down only -15% from it's 52 week high.

[Themes containing SOBHA]

SOBHA is currently in a up trend. Over the last three months 2 bullish signals in SOBHA have generated a profit of +0.08% for investors.


SOBHA has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, SOBHA outperformed the NIFTY-50 index on 47% days. Which indicates that on days SOBHA outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

During the last three months SOBHA was mostly profitable and delivered on average +0.29% per day. It's best return during this period (of +9.22%) was on Thursday, 17 Jan, 2019. While it's worst loss in the same period (of -4.27%) was on Friday, 11 Jan, 2019. There was initially a bullish trend during this period which started on 11 Dec, 2018 and went on till 19 Dec, 2018. The bullish trend returned +10.67% to investors. This was followed by a bearish trend that started on 20 Dec, 2018 and ended on 27 Dec, 2018. This bearish trend lost -7.31% of investor capital.

SOBHA had 6 profitable and 6 loss making months over the last year. SOBHA was profitable in more months than NIFTY-50 index. SOBHA was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -13.68% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SOBHA 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 +25.06%. It is interesting to note that both SOBHA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

I believe in capitalism for everybody, not necessarily high finance but capitalism that works for the working men and women of this country who are out there paddling alone in America right now.
-- Rick Santorum

SOBHA 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 surge in SOBHA's volatility from 28 Dec, 2018 to 17 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 SOBHA has significant negative skewness in it's return distribution. This indicates that SOBHA is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in SOBHA), two mid cap instruments that deserve special mention are HATSUN and CUB. They have significantly outperformed the overall market.

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