UFLEX investors hold onto their investments as it marginally outperforms

UFLEX ranked better than it's peers today. On a longer term basis, investors in UFLEX LIMITED made +0.12% per day. Wednesday's performance of +0.04% was a outperformance compared to it's daily average.

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Buy-and-Hold investors in UFLEX experienced a maximum drawdown of -17.97% over the last three months. It delivered -2.92% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were marginally more profitable than the long signals.

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UFLEX has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 29 Feb, 2016 to 26 Dec, 2017. Over the last 3 years and 1 month, UFLEX outperformed the NIFTY-50 index on 46% days. Which indicates that on days UFLEX 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 UFLEX was mostly loss making and delivered on average -0.03% per day. It's best return during this period (of +6.2%) was on Friday, 2 Nov, 2018. While it's worst loss in the same period (of -4.63%) was on Monday, 10 Dec, 2018. The longest stort-term trend during this period was 7 losing days, which started on 1 Jan, 2019 and ended on 9 Jan, 2019. This bearish trend lost -5.7% of investor capital.

The last 12 months saw UFLEX's investors making profits in 4 months and incurring losses in 8 months. During the last year, UFLEX and NIFTY-50 index had the same number of profitable months. UFLEX was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -15.52% compared to -6.42% returned by NIFTY-50 index in Sep 2018. UFLEX had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Sep 2018 to Nov 2018) during which period it delivered -11.32%. It is interesting to note that both UFLEX and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

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UFLEX is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in UFLEX's volatility from 13 Dec, 2018 to 21 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 UFLEX has significant negative skewness in it's return distribution. This indicates that UFLEX is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in UFLEX you may find it interesting to know that SRIPIPES, HATSUN and ~HOMEAPPLIANCES are all extremely risky investment candidates that must be evaluated carefully. Investors with low risk profile are better off avoiding them till their performance becomes more consistent.