SUPREME PETROCHEMICALS LT

190.1 -1.39 (-0.73%) Sell

Search for alternative investments is on for SUPPETRO investors as it shows weakness

16 min read

SUPREME PETROCHEMICALS LT ranked worse than it's peers on Friday. It returned -0.73% to close at 190.1. On a day when the overall market breadth was 71%, it closed higher than 76% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing SUPPETRO]

SUPPETRO is currently in a down trend. Over the last three months 3 bearish signals have generated a profit of +10.46% for investors.

Trend

SUPPETRO has been underperforming the NIFTY-50 index in recent time, after having outperformed till 27 Apr, 2017. Over the last 3 years and 1 month, SUPPETRO outperformed the NIFTY-50 index on 46% days. Which indicates that on days SUPPETRO 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 SUPPETRO was mostly loss making and delivered on average -0.39% per day. It's best return during this period (of +5.25%) was on Wednesday, 19 Dec, 2018. While it's worst loss in the same period (of -4.79%) was on Monday, 29 Oct, 2018. There was initially a bullish trend during this period which started on 11 Dec, 2018 and went on till 13 Dec, 2018. The bullish trend returned +5.56% to investors. This was followed by a bearish trend that started on 4 Jan, 2019 and ended on 14 Jan, 2019. This bearish trend lost -11.87% of investor capital.

On monthly basis, SUPPETRO delivered losses in more months over the last year, than profits. SUPPETRO delivered profits less regularly than NIFTY-50 index. SUPPETRO was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -11.34% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SUPPETRO had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -32.38%.

George Soros is one of the few characters from the world of finance who deserves to be called larger-than-life.
-- Gary Weiss

SUPPETRO 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 SUPPETRO's volatility from 26 Oct, 2018 to 30 Oct, 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 SUPPETRO has significant negative skewness in it's return distribution. This indicates that SUPPETRO is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in SUPPETRO), two instruments that have delivered similar performance as SUPPETRO are VISAKAIND and UFLEX. They are suitable as good alternative investment candidates that can diversify your portfolio.

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