9.91 -0.06 (-0.6%) Sell

AZRE investors looking to preserve capital

13 min read

AZURE POWER GLOBAL LTD (Foreign) was among the worst performers on Tuesday. It returned -0.6% to close at 9.91. It is currently trading -41% below it's 52 week high of 17.0.

[Themes containing AZRE]

AZRE is currently in a down trend. Over the last three months 3 bearish signals have generated a profit of +23.67% for investors.


AZRE has been outperforming the SP500 index in recent time. Over the last 2 years 2 months and 6 days, AZRE underperformed the SP500 index on 50% days. Which indicates that on days AZRE underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

AZRE returned losses on 58% days in the last three months. During this time, it delivered on average -0.65% per day. It delivered it's worst daily return of -8.55%, during this period, on Tuesday, 13 Nov, 2018. There was initially a bullish trend during this period which started on 26 Sep, 2018 and went on till 28 Sep, 2018. The bullish trend returned +5.66% to investors. This was followed by a bearish trend that started on 1 Oct, 2018 and ended on 9 Oct, 2018. This bearish trend lost -29.02% of investor capital.

On monthly basis, AZRE delivered profits and losses in equal number of months. AZRE delivered profits less regularly than SP500 index. AZRE was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -23.73% compared to -7.75% returned by SP500 index in Dec 2018. AZRE had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both AZRE and SP500 index significantly outperform during months when quarterly/annual results are announced.

Money won't create success, the freedom to make it will.
-- Nelson Mandela

AZRE is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant fall in AZRE's volatility from 19 Sep, 2018 to 1 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that AZRE 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.

SP500 index has more chance of extreme outcomes than AZRE. Therefore, SP500 must receive a lower allocation than AZRE in your portfolio. SP500 index usually has shorter drawdown period than AZRE.

On a general note (since you are interested in AZRE), two instruments that have been extremely volatile in recent times are IX and IMTE. Investors in these instruments should consider reducing their exposure (to IX and IMTE) and diversifying their portfolios.

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