VOLTAMP TRANSFORMERS LTD performed worse than the broader market on Wednesday. It returned -1.03% to close at 1081.15. On a day when the overall market breadth was 70%, it closed higher than 61% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0084%.
Buy-and-Hold investors in VOLTAMP experienced a maximum drawdown of -5.36% over the last three months. It returned +37.88% during this strong up 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 +31.58%.
VOLTAMP has been underperforming the NIFTY-50 index in recent time, after having outperformed till 17 Apr, 2017. Over the last 3 years and 1 month, VOLTAMP underperformed the NIFTY-50 index on 54% days.
During the last three months VOLTAMP was mostly profitable and delivered on average +0.53% per day. It's best return during this period (of +8.09%) was on Tuesday, 13 Nov, 2018. While it's worst loss in the same period (of -4.12%) was on Monday, 10 Dec, 2018. There was initially a bullish trend during this period which started on 26 Oct, 2018 and went on till 6 Nov, 2018. The bullish trend returned +17.88% to investors. This was followed by a bearish trend that started on 15 Nov, 2018 and ended on 20 Nov, 2018. This bearish trend lost -5.44% of investor capital.
On monthly basis, VOLTAMP delivered losses in more months over the last year, than profits. VOLTAMP delivered profits less regularly than NIFTY-50 index. VOLTAMP significantly outperformed NIFTY-50 index in Nov 2018, when it returned +37.76% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. VOLTAMP had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -15.16%. It is interesting to note that both VOLTAMP and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
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VOLTAMP 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 VOLTAMP's volatility from 13 Nov, 2018 to 22 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 VOLTAMP has significant negative skewness in it's return distribution. This indicates that VOLTAMP is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than VOLTAMP. Therefore, NIFTY-50 must receive a lower allocation than VOLTAMP in your portfolio. NIFTY-50 index usually has shorter drawdown period than VOLTAMP.
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