Use Rediff.com India Ltd. performance together with your assets to protect against small markets fluctuations as well as to check it against diversification policy that fits your risk preferences.
If you would invest 625 in Rediff.com India Ltd. on April 26, 2012 and sell it today you would lose (169.00) from holding Rediff.com India Ltd. or give up 27.04% of portfolio value over 30 days. Rediff.com India Ltd. is currenly does not generate positive expected returns and assumes 2.18% risk (volatility on return distribution) over the 30 days horizon. In different words, 36% of equities are less volatile than Rediff.com India Ltd. and 99% of traded equity instruments are projected to make higher returns than the company over the 30 days investment horizon.
Daily Expected Return (%)
Risk [Daily Volatility] (%)
Given investment horizon of 30 days, Rediff.com India Ltd. is expected to under-perform the market. In addition to that, the company is 2.99 times more volatile than its market benchmark. It trades about -0.61 of its total potential returns per unit of risk. The NYSE is currently generating roughly -0.47 per unit of volatility.
Rediff Operating Margin
Based on recorded statements Rediff.com India Ltd. has Operating Margin of -51.08%. This is 125.72% higher than that of Technology sector, and 229.76% higher than that of Internet Information Providers industry, The Operating Margin for all stocks is 895.71% higher than the company.
A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.
Over the last 30 days Rediff.com India Ltd. has generated negative risk-adjusted returns adding no value to investors with long positions.
1 Month Effecincy (a.k Sharpe Ratio) ...
-0.62
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REDF
Estimated Market Risk
2.18
actual daily
64 %
of total potential
Expected Return
-1.34
actual daily
1 %
of total potential
Risk-Adjusted Return
-0.62
actual daily
1 %
of total potential
Based on monthly moving average Rediff is performing at about 0% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Rediff by adding it to a well-diversified portfolio.
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