98.15 -0.79 (-0.81%) Sell

Are you evaluating investing in SWANENERGY? Wait as it underperformed

15 min read

SWAN ENERGY LIMITED underperformed on Tuesday. It lost -0.81% to close at 98.15. On a day when the overall market breadth was 70%, it closed higher than 54% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0036%.

[Themes containing SWANENERGY]

SWANENERGY showed a down trend over the last 3 months. During this period SWANENERGY lost -1.85% and saw a maximum drawdown of -9.7%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in SWANENERGY till volatility reduces and a clear trend emerges.


SWANENERGY has been underperforming the NIFTY-50 index in recent time, after having outperformed till 19 Jan, 2018. Over the last 3 years and 1 month, SWANENERGY outperformed the NIFTY-50 index on 46% days. Which indicates that on days SWANENERGY outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

SWANENERGY returned losses on 58% days in the last three months. During this time, it delivered on average -0.02% per day. It delivered it's best daily return of +4.14%, during this period, on Monday, 19 Nov, 2018. There was initially a bullish trend during this period which started on 1 Nov, 2018 and went on till 5 Nov, 2018. The bullish trend returned +4.07% to investors. This was followed by a bearish trend that started on 22 Nov, 2018 and ended on 28 Nov, 2018. This bearish trend lost -4.28% of investor capital.

SWANENERGY had 2 profitable and 10 loss making months over the last year. During the last year, SWANENERGY underperformed NIFTY-50 index on monthly return basis. SWANENERGY was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Oct 2018, returned -22.47% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SWANENERGY 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 -33.11%.

Finance, like time, devours its own children.
-- Honore de Balzac

SWANENERGY 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 SWANENERGY's volatility from 19 Nov, 2018 to 9 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 SWANENERGY has significant negative skewness in it's return distribution. This indicates that SWANENERGY is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in SWANENERGY you may find it interesting to know that GICHSGFIN, SUNTV and BANCOINDIA have all performed similar to SWANENERGY and qualify as alternative investment candidates that must be evaluated for diversification.

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