UJJIVAN FIN. SERVC. LTD.

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.

Trend

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.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter