VMART RETAIL LTD outperformed the broader market today. It increased by +1.34% to close at 2305.95. During the last week it increased by +2.13% and saw a maximum drawdown of -1.71% before bouncing back.
Buy-and-Hold investors in VMART experienced a maximum drawdown of -22.27% over the last three months. It increased by +16.34% 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.
VMART has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 2 Aug, 2016 to 3 Sep, 2018. Over the last 3 years and 1 month, VMART outperformed the NIFTY-50 index on 50% days. Which indicates that on days VMART 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 VMART delivered losses on 53% days. However, it still managed to end this period in a profit. It's best return during this period (of +9.92%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -5.07%) was on Monday, 10 Dec, 2018. The longest stort-term trend during this period was 7 losing days, which started on 2 Jan, 2019 and ended on 10 Jan, 2019. This bearish trend lost -13.01% of investor capital.
During the last year VMART had 7 profitable months and 5 loss making months. VMART returned profits in more months than NIFTY-50 index. VMART significantly outperformed NIFTY-50 index in Aug 2018, when it returned +31.27% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. VMART had a longer winning streak of profitable months than NIFTY-50 index. It went up in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered +53.58%.
There's more honor in investment management than in investment banking.
-- Charlie Munger
VMART 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 VMART's volatility from 2 Nov, 2018 to 23 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 VMART 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.
NIFTY-50 index has more chance of extreme outcomes than VMART. Therefore, NIFTY-50 must receive a lower allocation than VMART in your portfolio. NIFTY-50 index usually has shorter drawdown period than VMART.
Based on your interest in VMART you may find it interesting to know that KARURVYSYA, LTTS and CUB are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.
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