VOLTAS investors looking to add more to current positions

VOLTAS LTD showed marginal outperformance today. It increased by +0.09% to close at 535.15. During the last week it delivered -1.03% and saw a maximum drawdown of -1.78% before bouncing back.

[Themes containing VOLTAS]

VOLTAS is currently in a bearish trend. Over the last three months Buy-and-Hold has been a better strategy (returning +5.52%) for VOLTAS's investors than shorting it.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

VOLTAS has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 10 Mar, 2016 to 27 Dec, 2017. Over the last 3 years and 1 month, VOLTAS outperformed the NIFTY-50 index on 50% days. Which indicates that on days VOLTAS 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 VOLTAS delivered losses on 51% days. However, it still managed to end this period in a profit. It's best return during this period (of +4.86%) was on Friday, 9 Nov, 2018. While it's worst loss in the same period (of -3.75%) was on Friday, 26 Oct, 2018. The longest stort-term trend during this period was 4 profitable days, which started on 27 Dec, 2018 and went on till 1 Jan, 2019. This bullish trend returned +1.06% to investors.

The last 12 months saw VOLTAS's investors making profits in 7 months and incurring losses in 5 months. During the last year, VOLTAS delivered profits in more months than NIFTY-50 index. VOLTAS was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -16.06% compared to -6.42% returned by NIFTY-50 index in Sep 2018. VOLTAS had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered +3.26%. It is interesting to note that both VOLTAS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Try to save something while your salary is small; It's impossible to save after you begin to earn more.
-- Jack Benny

VOLTAS 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 VOLTAS's volatility from 9 Nov, 2018 to 18 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 VOLTAS 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 VOLTAS derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in VOLTAS you may find it interesting to know that ORIENTREF has delivered similar performance as VOLTAS and can be considered as an alternative investment candidate (to VOLTAS).