Stop-loss on the minds of SOLARINDS investors as it underperforms
23 Jan, 201913 min read
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SOLAR INDUSTRIES (I) LTD was among the worst performers today. It lost -2.2% to close at 1009.7. It's recent 5 day performance has been -0.26%, +0.51%, +0.54%, +0.79% and -2.06%.
SOLARINDS is currently in a up trend. Over the last three months Buy-and-Hold has been a better strategy (returning +4.31%) for SOLARINDS's investors than trading long signals.
SOLARINDS has been underperforming the NIFTY-50 index in recent time, after having outperformed till 3 Aug, 2018. Over the last 3 years and 1 month, SOLARINDS outperformed the NIFTY-50 index on 49% days. Which indicates that on days SOLARINDS 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 SOLARINDS delivered losses on 51% days. However, it still managed to end this period in a profit. It's best return during this period (of +3.48%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -3.55%) was on Thursday, 6 Dec, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 31 Oct, 2018. The bullish trend returned +5.98% to investors. This was followed by a bearish trend that started on 15 Nov, 2018 and ended on 20 Nov, 2018. This bearish trend lost -2.76% of investor capital.
SOLARINDS had 5 profitable and 7 loss making months over the last year. SOLARINDS was profitable in more months than NIFTY-50 index. SOLARINDS significantly outperformed NIFTY-50 index in May 2018, when it returned +10.11% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. SOLARINDS had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -13.92%.
"You and I come by road or rail, but economists travel on infrastructure.
SOLARINDS 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 surge in SOLARINDS's volatility from 26 Oct, 2018 to 1 Nov, 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 SOLARINDS has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.
SOLARINDS has more chance of extreme outcomes than the NIFTY-50 index. Therefore, SOLARINDS must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than SOLARINDS.
On a general note (since you are interested in SOLARINDS), BAJAJFINSV is a large cap that deserves to be closely tracked for investment opportunities.
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