THE GE SHPG.LTD

306.0 -2.53 (-0.83%) Buy

Stop-loss on the minds of GESHIP investors as it performed worse than the broader market

13 min read

THE GE SHPG.LTD ranked worse than it's peers on Friday. It lost -0.83% to close at 306.0. On a day when the overall market breadth was 71%, it closed higher than 35% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing GESHIP]

GESHIP is currently in a up trend. The current bullish signal has generated a profit of +9.5% for GESHIP's investors in the last three months.

Trend

GESHIP has been underperforming the NIFTY-50 index in recent time, after having outperformed till 21 Apr, 2017. Over the last 3 years and 1 month, GESHIP underperformed the NIFTY-50 index on 51% days.

During the last three months GESHIP was mostly profitable and delivered on average +0.17% per day. It's best return during this period (of +5.81%) was on Wednesday, 24 Oct, 2018. While it's worst loss in the same period (of -3.79%) was on Monday, 24 Dec, 2018. There was initially a bearish trend during this period which started on 9 Nov, 2018 and went on till 16 Nov, 2018. The trend delivered -8.72% losses to investors. This was followed by a bullish trend that started on 6 Dec, 2018 and ended on 14 Dec, 2018. This bullish trend delivered +18.19% to investors.

GESHIP had 5 profitable and 7 loss making months over the last year. During the last year, number of profitable months of GESHIP and NIFTY-50 index were the same. GESHIP was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -14.58% compared to -6.42% returned by NIFTY-50 index in Sep 2018. GESHIP and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both GESHIP and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"Price is what you pay and value is what you get.

GESHIP is becoming less 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 GESHIP's volatility from 31 Oct, 2018 to 3 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 GESHIP has significant negative skewness in it's return distribution. This indicates that GESHIP is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in GESHIP), two instruments that deserve special mention are NIITTECH and LTI. They have significantly outperformed the overall market this year.

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