STERLITE TECHNOLOGIES LTD was among the best performers on Friday. It returned +0.78% to close at 291.35. It is currently trading -28% below it's 52 week high of 407.95.
STRTECH showed a strong down trend over the last 3 months. During this period STRTECH returned -10.92% and saw a maximum drawdown of -26.94%. There were 4 short signals during this period that returned a cumulative of +8.34% to investors.
STRTECH has been underperforming the NIFTY-50 index in recent time, after having outperformed till 24 Jan, 2018. Over the last 3 years and 1 month, STRTECH outperformed the NIFTY-50 index on 48% days. Which indicates that on days STRTECH 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 STRTECH was mostly loss making and delivered on average -0.16% per day. It's best return during this period (of +6.47%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -5.01%) was on Monday, 10 Dec, 2018. There was initially a bullish trend during this period which started on 24 Oct, 2018 and went on till 1 Nov, 2018. The bullish trend returned +20.32% to investors. This was followed by a bearish trend that started on 3 Dec, 2018 and ended on 10 Dec, 2018. This bearish trend lost -19.75% of investor capital.
On monthly basis, STRTECH delivered losses in more months over the last year, than profits. STRTECH delivered profits less regularly than NIFTY-50 index. STRTECH significantly outperformed NIFTY-50 index in Oct 2018, when it returned +29.11% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. STRTECH had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Nov 2018 to Jan 2019) during which period it delivered -25.12%. It is interesting to note that both STRTECH and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
It is time for us to stand and cheer for the doer, the achiever, the one who recognizes the challenge and does something about it.
-- Vince Lombardi
STRTECH 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 STRTECH's volatility from 30 Oct, 2018 to 15 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 STRTECH has significant negative skewness in it's return distribution. This indicates that STRTECH is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than STRTECH. Therefore, NIFTY-50 must receive a lower allocation than STRTECH in your portfolio. NIFTY-50 index usually has shorter drawdown period than STRTECH.
On a general note (since you are interested in STRTECH), three instruments that have performed similar to STRTECH are CANFINHOME, BHAGYAPROP and TFCILTD. They must all be evaluated as alternative investment options and for diversification.
... 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