SSWL continues its fall as more investors loose confidence
18 Jan, 201913 min read
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SSWL trailed the broader market today. On a longer term basis, investors in STEEL STRIPS WHEELS LTD. made +0.14% per day. Friday's performance of -0.25% was a underperformance compared to it's daily average.
SSWL showed a strong bearish trend over the last 3 months. During this period SSWL delivered -13.18% and saw a maximum drawdown of -21.64%. There were 2 short signals during this period that returned a cumulative of +0.39% to investors.
SSWL has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 17 Feb, 2016 to 24 Apr, 2018. Over the last 3 years and 1 month, SSWL outperformed the NIFTY-50 index on 49% days. Which indicates that on days SSWL 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 SSWL was mostly loss making and delivered on average -0.21% per day. It's best return during this period (of +9.7%) was on Friday, 2 Nov, 2018. While it's worst loss in the same period (of -5.11%) was on Friday, 16 Nov, 2018. The longest stort-term trend during this period was 6 losing days, which started on 13 Nov, 2018 and ended on 20 Nov, 2018. This bearish trend lost -12.34% of investor capital.
The last 12 months saw SSWL's investors making profits in 4 months and incurring losses in 8 months. SSWL was less consistent in delivering monthly returs than NIFTY-50 index. SSWL significantly outperformed NIFTY-50 index in Apr 2018, when it returned +25.17% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. SSWL 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 -26.46%. It is interesting to note that both SSWL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
"Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it.
SSWL 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 SSWL's volatility from 16 Nov, 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 SSWL has significant negative skewness in it's return distribution. This indicates that SSWL is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than SSWL. Therefore, NIFTY-50 must receive a lower allocation than SSWL in your portfolio. NIFTY-50 index usually has shorter drawdown period than SSWL.
Based on your interest in SSWL you may find it interesting to know that BAJFINANCE, NIFTY-GS-15YRPLUS and BRITANNIA have all shown remarkable performance and qualify to be on every investor's watchlist.
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