105.85 -0.1 (-0.09%) Buy

STEL investors check their stop-losses as it underperforms

13 min read

STEL underperformed today. On a longer term basis, investors in STEL HOLDINGS LIMITED made +0.23% per day. Friday's performance of -0.09% was a significant underperformance compared to it's daily average.

[Themes containing STEL]

Buy-and-Hold investors in STEL experienced a maximum drawdown of -5.94% over the last three months. It gained +6.49% during this up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +3.98%.


STEL has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, STEL outperformed the NIFTY-50 index on 45% days. Which indicates that on days STEL outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

STEL was profitable on 56% days in the last three months. During this time, it delivered on average +0.11% per day. It delivered it's worst daily return of -4.59%, during this period, on Monday, 5 Nov, 2018. There was initially a bearish trend during this period which started on 25 Oct, 2018 and went on till 26 Oct, 2018. The trend delivered -3.48% losses to investors. This was followed by a bullish trend that started on 3 Dec, 2018 and ended on 10 Dec, 2018. This bullish trend delivered +1.2% to investors.

On monthly basis, STEL delivered profits in more months over the last year, than losses. STEL delivered profits in more months than NIFTY-50 index. STEL significantly outperformed NIFTY-50 index in Aug 2018, when it returned +21.33% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. STEL 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 +12.37%. It is interesting to note that both STEL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

An investment in knowledge pays the best interest.
-- Benjamin Franklin

STEL 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 fall in STEL's volatility from 22 Oct, 2018 to 18 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 STEL has significant negative skewness in it's return distribution. This indicates that STEL is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in STEL), two instruments that deserve special mention are ~CHEMICALS and ~MKTCAP201TO250. They have significantly outperformed the overall market.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter