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.
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.
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