Stop-loss on the minds of TVSELECT investors as it ranked worse than it's peers
18 Jan, 201913 min read
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TVS ELECTRONICS LTD has destroyed investor wealth on Friday. It lost -4.06% to close at 203.35. It is currently trading -62% below it's 52 week high of 545.65.
TVSELECT is currently in a up trend. Over the last three months Buy-and-Hold has been a better strategy (returning -8.77%) for TVSELECT's investors than trading long signals.
TVSELECT has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, TVSELECT outperformed the NIFTY-50 index on 40% days. Which indicates that on days TVSELECT 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 TVSELECT was mostly loss making and delivered on average -0.1% per day. It's best return during this period (of +9.99%) was on Thursday, 17 Jan, 2019. While it's worst loss in the same period (of -4.99%) was on Monday, 5 Nov, 2018. There was initially a bullish trend during this period which started on 26 Oct, 2018 and went on till 31 Oct, 2018. The bullish trend returned +18.41% to investors. This was followed by a bearish trend that started on 1 Nov, 2018 and ended on 7 Nov, 2018. This bearish trend lost -14.19% of investor capital.
TVSELECT had 6 profitable and 6 loss making months over the last year. During the last year, number of profitable months of TVSELECT and NIFTY-50 index were the same. TVSELECT significantly outperformed NIFTY-50 index in Apr 2018, when it returned +46.92% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. TVSELECT and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both TVSELECT and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
I think that stocks have been this tremendous, tremendous equalizer for people in this country. Guys who can't make a lot of money at their jobs have been able to make a lot of money in the stock market.
-- Jim Cramer
TVSELECT is becoming more 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 TVSELECT's volatility from 22 Oct, 2018 to 14 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 TVSELECT has significant negative skewness in it's return distribution. This indicates that TVSELECT is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than TVSELECT. Therefore, NIFTY-50 must receive a lower allocation than TVSELECT in your portfolio. NIFTY-50 index usually has shorter drawdown period than TVSELECT.
On a general note (since you are interested in TVSELECT), three mid cap instruments that deserve special mention are CUB, BATAINDIA and LTI. They have all outperformed the market and must be closely watched for investment opportunities.
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