EROS INTERNATIONAL PLC (Foreign) was among the worst performers on Tuesday. It returned -0.7% to close at 8.57. It is currently trading -40% below it's 52 week high of 14.5.
Buy-and-Hold investors in EROS experienced a maximum drawdown of -35.29% over the last three months. It returned -32.25% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +21.88%.
EROS has been underperforming the SP500 index in recent time, after having outperformed till 8 Aug, 2016. Over the last 2 years 11 months and 7 days, EROS underperformed the SP500 index on 50% days. Which indicates that on days EROS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
During the last three months EROS was mostly loss making and delivered on average -0.54% per day. It's best return during this period (of +9.43%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -14.52%) was on Monday, 19 Nov, 2018. There was initially a bearish trend during this period which started on 8 Oct, 2018 and went on till 12 Oct, 2018. The trend delivered -19.61% losses to investors. This was followed by a bullish trend that started on 13 Nov, 2018 and ended on 16 Nov, 2018. This bullish trend delivered +7.7% to investors.
On monthly basis, EROS delivered losses in more months over the last year, than profits. EROS delivered profits less regularly than SP500 index. EROS significantly outperformed SP500 index in May 2018, when it returned +26.17% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. EROS had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Jun 2018 to Aug 2018) during which period it delivered -20.06%. It is interesting to note that both EROS and SP500 index significantly outperform during months when quarterly/annual results are announced.
Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.
-- Charles Dickens
EROS 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 EROS's volatility from 13 Sep, 2018 to 27 Sep, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that EROS has significant positive skewness in it's return distribution. This indicates that investors can expect EROS to recover from drawdowns quickly. Which makes EROS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Based on your interest in EROS you may find it interesting to know that TPNL has shown remarkable performance this year and deserves to be on every investors' watchlist.
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