179.0 -1.98 (-1.1%) Sell

YESBANK investors take a massive hit

13 min read

YESBANK delivered massive losses today. On a longer term basis, investors in YES BANK LIMITED made +0.09% per day. Tuesday's performance of -1.1% was a significant underperformance compared to it's daily average.

[Themes containing YESBANK]

Buy-and-Hold investors in YESBANK experienced a maximum drawdown of -49.73% over the last three months. It lost -43.92% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +43.92% for investors.


YESBANK has been underperforming the NIFTY-50 index in recent time, after having outperformed till 19 Jul, 2018. Over the last 2 years and 12 months, YESBANK underperformed the NIFTY-50 index on 47% days. Which indicates that on days YESBANK underperforms the NIFTY-50 index, it's performance is marginally worse than on the days it outperforms the NIFTY-50 index.

YESBANK returned losses on 52% days in the last three months. During this time, it delivered on average -0.77% per day. It delivered it's worst daily return of -29.04%, during this period, on Friday, 21 Sep, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 9 Nov, 2018. The bullish trend returned +23.79% to investors. This was followed by a bearish trend that started on 22 Nov, 2018 and ended on 29 Nov, 2018. This bearish trend lost -20.28% of investor capital.

YESBANK had 4 profitable and 8 loss making months over the last year. During the last year, YESBANK underperformed NIFTY-50 index on monthly return basis. YESBANK was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -46.54% compared to -6.42% returned by NIFTY-50 index in Sep 2018. YESBANK had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Aug 2018 to Nov 2018) during which period it delivered -69.26%. It is interesting to note that both YESBANK and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"Watch your finances like a hawk.

YESBANK 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 YESBANK's volatility from 19 Sep, 2018 to 21 Sep, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 21 Sep, 2018 to 5 Dec, 2018.

Advanced/professional short-term investors should note that YESBANK has significant positive skewness in it's return distribution. This indicates that investors can expect YESBANK to recover from drawdowns quickly. Which makes YESBANK a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in YESBANK derivatives at this moment can consider 'Long Strangle' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in YESBANK), TCS is a large cap that deserves to be closely tracked for investment opportunities.

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