Stop-loss on the minds of ZYDUSWELL investors as it was among the worst performers
18 Jan, 201913 min read
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ZYDUS WELLNESS LIMITED is a falling knife that can bleed you if you catch it on Friday. It lost -3.84% to close at 1290.9. On a day when the overall market breadth was 71%, it closed higher than 60% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.
ZYDUSWELL is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +4.32% for investors.
ZYDUSWELL has been underperforming the NIFTY-50 index in recent time, after having outperformed till 4 Sep, 2018. Over the last 3 years and 1 month, ZYDUSWELL outperformed the NIFTY-50 index on 47% days. Which indicates that on days ZYDUSWELL outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
ZYDUSWELL returned losses on 54% days in the last three months. During this time, it delivered on average +0.04% per day. It delivered it's best daily return of +6.65%, during this period, on Tuesday, 27 Nov, 2018. There was initially a bearish trend during this period which started on 23 Oct, 2018 and went on till 29 Oct, 2018. The trend delivered -11.96% losses to investors. This was followed by a bullish trend that started on 6 Dec, 2018 and ended on 12 Dec, 2018. This bullish trend delivered +11.14% to investors.
ZYDUSWELL had 7 profitable and 5 loss making months over the last year. ZYDUSWELL was profitable in more months than NIFTY-50 index. ZYDUSWELL significantly outperformed NIFTY-50 index in Feb 2018, when it returned +25.58% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. ZYDUSWELL had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Jun 2018 to Aug 2018) during which period it delivered +35.04%.
"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.
ZYDUSWELL 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 ZYDUSWELL's volatility from 22 Oct, 2018 to 17 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 ZYDUSWELL has significant negative skewness in it's return distribution. This indicates that ZYDUSWELL is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than ZYDUSWELL. Therefore, NIFTY-50 must receive a lower allocation than ZYDUSWELL in your portfolio. NIFTY-50 index usually has shorter drawdown period than ZYDUSWELL.
On a general note (since you are interested in ZYDUSWELL), if you are an investor in NIFTY50-DIV-POINT, you need to be extra careful (consider limiting your exposure or diversifying) as it is extremely unpredictable and therefore risky.
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