GILLANDERS ARBUTHNOT LTD

57.0 -0.5 (-0.87%) Buy

Search for alternative investments is on for GILLANDERS investors as it underperforms

13 min read

GILLANDERS ARBUTHNOT LTD showed weakness on Tuesday. It returned -0.87% to close at 57.0. On a day when the overall market breadth was 70%, it closed higher than 39% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0036%.

[Themes containing GILLANDERS]

Buy-and-Hold investors in GILLANDERS experienced a maximum drawdown of -14.01% over the last three months. It gained +5.56% during this up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.

Trend

GILLANDERS has been underperforming the NIFTY-50 index in recent time, after having outperformed till 5 Jan, 2016. Over the last 3 years and 1 month, GILLANDERS underperformed the NIFTY-50 index on 53% days.

GILLANDERS returned losses on 58% days in the last three months. During this time, it delivered on average +0.12% per day. It delivered it's best daily return of +7.73%, during this period, on Thursday, 15 Nov, 2018. There was initially a bullish trend during this period which started on 14 Nov, 2018 and went on till 19 Nov, 2018. The bullish trend returned +10.63% to investors. This was followed by a bearish trend that started on 30 Nov, 2018 and ended on 5 Dec, 2018. This bearish trend lost -14.21% of investor capital.

On monthly basis, GILLANDERS delivered profits and losses in equal number of months. GILLANDERS delivered profits less regularly than NIFTY-50 index. GILLANDERS significantly outperformed NIFTY-50 index in Nov 2018, when it returned +21.9% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. GILLANDERS and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both GILLANDERS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Investment philosophy is the clear understanding that by owning shares of stocks he owns businesses, not pieces of paper.
-- Warren Edward Buffett

GILLANDERS 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 GILLANDERS's volatility from 23 Oct, 2018 to 15 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 GILLANDERS has significant negative skewness in it's return distribution. This indicates that GILLANDERS is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in GILLANDERS you may find it interesting to know that DICIND, ENGINERSIN and PARAGMILK have all performed similar to GILLANDERS and qualify as alternative investment candidates that must be evaluated for diversification.

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