284.3 -6.16 (-2.17%) Buy

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

13 min read

UJJIVAN FIN. SERVC. LTD. has destroyed investor wealth today. It lost -2.17% to close at 284.3. During the last week it lost -1.15% and saw a maximum drawdown of -2.17% before bouncing back.

[Themes containing UJJIVAN]

UJJIVAN is currently in a up trend. The current bullish signal has generated a profit of +21.42% for UJJIVAN's investors in the last three months.


UJJIVAN has been outperforming the NIFTY-50 index in recent time. Over the last 2 years 8 months and 13 days, UJJIVAN underperformed the NIFTY-50 index on 53% days.

During the last three months UJJIVAN was mostly profitable and delivered on average +0.44% per day. It's best return during this period (of +8.79%) was on Thursday, 20 Dec, 2018. While it's worst loss in the same period (of -17.73%) was on Friday, 26 Oct, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 1 Nov, 2018. The bullish trend returned +20.51% to investors. This was followed by a bearish trend that started on 5 Dec, 2018 and ended on 10 Dec, 2018. This bearish trend lost -7.44% of investor capital.

UJJIVAN had 4 profitable and 8 loss making months over the last year. During the last year, number of profitable months of UJJIVAN and NIFTY-50 index were the same. UJJIVAN was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -29.13% compared to -6.42% returned by NIFTY-50 index in Sep 2018. UJJIVAN had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from May 2018 to Oct 2018) during which period it delivered -63.11%. It is interesting to note that both UJJIVAN and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

My expertise was in public finance, particularly corporate taxation, since I had worked at the US Treasury.
-- Merton Miller

UJJIVAN 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 UJJIVAN's volatility from 24 Oct, 2018 to 16 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 UJJIVAN has significant negative skewness in it's return distribution. This indicates that UJJIVAN is very risky for short-term investment and can significantly underperform for long durations.

Investors trading in UJJIVAN derivatives at this moment can consider 'Long Strangle' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in UJJIVAN), two instruments that deserve special mention are NIFTY-GS-15YRPLUS and BRITANNIA. They have significantly outperformed the overall market.

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