VINYL CHEMICALS (I) LTD. has destroyed investor wealth on Friday. It delivered -1.62% to close at 82.15. On a day when the overall market breadth was 71%, it closed higher than 87% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.
Buy-and-Hold investors in VINYLINDIA experienced a maximum drawdown of -10.64% over the last three months. It increased by +2.37% during this 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.
VINYLINDIA has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 21 Mar, 2016 to 3 May, 2018. Over the last 3 years and 1 month, VINYLINDIA underperformed the NIFTY-50 index on 56% days.
During the last three months VINYLINDIA delivered losses on 54% days. However, it still managed to end this period in a profit. It's best return during this period (of +5.41%) was on Wednesday, 19 Dec, 2018. While it's worst loss in the same period (of -4.51%) was on Tuesday, 23 Oct, 2018. The longest stort-term trend during this period was 5 losing days, which started on 3 Dec, 2018 and ended on 7 Dec, 2018. This bearish trend lost -4.77% of investor capital.
The last 12 months saw VINYLINDIA's investors making profits in 6 months and incurring losses in 6 months. During the last year, VINYLINDIA delivered profits in more months than NIFTY-50 index. VINYLINDIA significantly outperformed NIFTY-50 index in Apr 2018, when it returned +21.45% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. VINYLINDIA had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Nov 2018 to Jan 2019) during which period it delivered +8.13%. It is interesting to note that both VINYLINDIA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
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VINYLINDIA is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant surge in VINYLINDIA's volatility from 19 Oct, 2018 to 29 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 VINYLINDIA has significant negative skewness in it's return distribution. This indicates that VINYLINDIA is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than VINYLINDIA. Therefore, NIFTY-50 must receive a lower allocation than VINYLINDIA in your portfolio. NIFTY-50 index usually has shorter drawdown period than VINYLINDIA.
Based on your interest in VINYLINDIA you may find it interesting to know that EDELWEISS and ALICON have both performed similar to VINYLINDIA and can be considered by investors as alternative investment options.
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