207.3 +0.4 (+0.19%) Sell

VGUARD investors update their stop-losses higher

14 min read

V-GUARD IND LTD. showed marginal outperformance on Friday. It increased by +0.19% to close at 207.3. On a day when the overall market breadth was 71%, it closed higher than 81% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing VGUARD]

Buy-and-Hold investors in VGUARD experienced a maximum drawdown of -12.5% over the last three months. It increased by +18.86% during this strong bullish trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +16.42%.


VGUARD has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 18 Mar, 2016 to 20 Apr, 2018. Over the last 3 years and 1 month, VGUARD outperformed the NIFTY-50 index on 50% days. Which indicates that on days VGUARD 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 VGUARD was mostly profitable and delivered on average +0.29% per day. It's best return during this period (of +4.64%) was on Wednesday, 12 Dec, 2018. While it's worst loss in the same period (of -4.05%) was on Monday, 7 Jan, 2019. The longest stort-term trend during this period was 8 profitable days, which started on 24 Oct, 2018 and went on till 2 Nov, 2018. This bullish trend returned +15.46% to investors.

The last 12 months saw VGUARD's investors making profits in 7 months and incurring losses in 5 months. During the last year, VGUARD delivered profits in more months than NIFTY-50 index. VGUARD was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -21.35% compared to -6.42% returned by NIFTY-50 index in Sep 2018. VGUARD had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered +26.48%. It is interesting to note that both VGUARD and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

When I graduated, I promptly took a job in finance, making both my pre-med and poli-sci years essentially useless - or so I thought.
-- Yael Cohen

VGUARD 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 surge in VGUARD's volatility from 19 Oct, 2018 to 25 Oct, 2018. 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 VGUARD has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

Investors trading in VGUARD derivatives at this moment can consider 'Married Put' options strategy to receive better risk-adjusted returns.

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

Based on your interest in VGUARD you may find it interesting to know that TIDEWATER, IEX and HATSUN 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.

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