111.9 -1.92 (-1.71%) Sell

Stop-loss on the minds of GDL investors as it ranked among the worst performers

13 min read

GDL was among the worst performers today. On a longer term basis, investors in GATEWAY DISTRIPARKS LTD. made -0.02% per day. Friday's performance of -1.71% was a significant underperformance compared to it's daily average.

[Themes containing GDL]

Buy-and-Hold investors in GDL experienced a maximum drawdown of -33.62% over the last three months. It lost -22.99% 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 +10.46%.


GDL has been underperforming the NIFTY-50 index in recent time, after having outperformed till 15 Jan, 2016. Over the last 3 years and 1 month, GDL underperformed the NIFTY-50 index on 53% days.

During the last three months GDL was mostly loss making and delivered on average -0.39% per day. It's best return during this period (of +10.45%) was on Friday, 9 Nov, 2018. While it's worst loss in the same period (of -4.1%) was on Monday, 19 Nov, 2018. There was initially a bullish trend during this period which started on 2 Nov, 2018 and went on till 14 Nov, 2018. The bullish trend returned +18.71% to investors. This was followed by a bearish trend that started on 4 Jan, 2019 and ended on 15 Jan, 2019. This bearish trend lost -10.52% of investor capital.

GDL had 3 profitable and 9 loss making months over the last year. During the last year, GDL underperformed NIFTY-50 index on monthly return basis. GDL was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -21.92% compared to -6.42% returned by NIFTY-50 index in Sep 2018. GDL had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered -34.2%.

"You and I come by road or rail, but economists travel on infrastructure.

GDL is becoming more 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 GDL's volatility from 19 Oct, 2018 to 20 Dec, 2018. 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 GDL has significant negative skewness in it's return distribution. This indicates that GDL is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in GDL), three instruments that are extremely volatile are HATSUN, IGARASHI and ~HOMEAPPLIANCES. They must all be evaluated prudently and investors are better off avoiding them at the moment.

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