WONDERLA investors update their stop-losses higher
18 Jan, 201914 min read
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WONDERLA HOLIDAYS LTD. managed to marginally outperform the broader market today. It gained +0.51% to close at 277.1. During the last week it gained +2.4% and saw a maximum drawdown of -0.3% before bouncing back.
Buy-and-Hold investors in WONDERLA experienced a maximum drawdown of -11.88% over the last three months. It returned +0.84% during this flat trending period. There were both Long and Short signals during this period, while the long signals were marginally more profitable than the short signals.
WONDERLA has been underperforming the NIFTY-50 index in recent time, after having outperformed till 27 Jan, 2016. Over the last 3 years and 1 month, WONDERLA underperformed the NIFTY-50 index on 51% days.
WONDERLA returned losses on 56% days in the last three months. During this time, it delivered on average +0.02% per day. It delivered it's best daily return of +4.96%, during this period, on Tuesday, 30 Oct, 2018. There was initially a bearish trend during this period which started on 22 Oct, 2018 and went on till 26 Oct, 2018. The trend delivered -2.65% losses to investors. This was followed by a bullish trend that started on 7 Nov, 2018 and ended on 14 Nov, 2018. This bullish trend delivered +5.02% to investors.
On monthly basis, WONDERLA delivered losses in more months over the last year, than profits. WONDERLA delivered profits less regularly than NIFTY-50 index. WONDERLA was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -9.73% compared to -6.42% returned by NIFTY-50 index in Sep 2018. WONDERLA 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 -15.68%. It is interesting to note that both WONDERLA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down.
-- Warren Edward Buffett
WONDERLA 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 surge in WONDERLA's volatility from 19 Oct, 2018 to 30 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 WONDERLA has significant negative skewness in it's return distribution. This indicates that WONDERLA is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than WONDERLA. Therefore, NIFTY-50 must receive a lower allocation than WONDERLA in your portfolio. NIFTY-50 index usually has shorter drawdown period than WONDERLA.
On a general note (since you are interested in WONDERLA), two instruments that have delivered similar performance as WONDERLA are SBIN and M&M. They are suitable as good alternative investment candidates that can diversify your portfolio.
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