GE POWER INDIA LIMITED ranked better than it's peers today. It delivered +0.55% to close at 819.95. It's recent 5 day performance has been -1.03%, +0.99%, -0.27%, +0.75% and -0.48%.
GEPIL showed a flat trend over the last 3 months. During this period GEPIL delivered +0.4% and saw a maximum drawdown of -7.5%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in GEPIL till volatility reduces and a clear trend emerges.
GEPIL has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 19 Oct, 2016 to 2 Apr, 2018. Over the last 3 years and 1 month, GEPIL underperformed the NIFTY-50 index on 51% days.
During the last three months GEPIL delivered losses on 56% days. However, it still managed to end this period in a profit. It's best return during this period (of +3.29%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -2.86%) was on Tuesday, 18 Dec, 2018. The longest stort-term trend during this period was 5 losing days, which started on 20 Nov, 2018 and ended on 27 Nov, 2018. This bearish trend lost -7.73% of investor capital.
During the last year GEPIL had 5 profitable months and 7 loss making months. Profitable number of months of GEPIL and NIFTY-50 index were the same. GEPIL significantly outperformed NIFTY-50 index in Oct 2018, when it returned +12.97% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. GEPIL and NIFTY-50 index, both had periods of 2 consecutive losing months. It is interesting to note that both GEPIL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
A real entrepreneur is somebody who has no safety net underneath them.
-- Henry Kravis
GEPIL is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in GEPIL's volatility from 25 Oct, 2018 to 22 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 GEPIL has significant negative skewness in it's return distribution. This indicates that GEPIL is very risky for short-term investment and can significantly underperform for long durations.
GEPIL has more chance of extreme outcomes than the NIFTY-50 index. Therefore, GEPIL must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than GEPIL.
On a general note (since you are interested in GEPIL), if you are evaluating GEPIL as an investment candidate, then you should read about ERIS which has delivered similar performance and can help diversify your portfolio.
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