GLAXOSMITHKLINE PHARMA LT

1417.7 -19.92 (-1.4%) Sell

Stop-loss on the minds of GLAXO investors as it was among the worst performers

13 min read

GLAXOSMITHKLINE PHARMA LT was among the worst performers today. It lost -1.4% to close at 1417.7. During the last week it lost -3.52% and saw a maximum drawdown of -3.52%.

[Themes containing GLAXO]

Buy-and-Hold investors in GLAXO experienced a maximum drawdown of -9.59% over the last three months. It returned +0.08% during this flat trending period. There were both Long and Short signals during this period, while the long signals were marginally more profitable than the short signals.

Trend

GLAXO has been underperforming the NIFTY-50 index in recent time, after having outperformed till 1 Apr, 2016. Over the last 3 years and 1 month, GLAXO underperformed the NIFTY-50 index on 49% days. Which indicates that on days GLAXO underperforms the NIFTY-50 index, it's performance is marginally worse than on the days it outperforms the NIFTY-50 index.

During the last three months GLAXO was mostly profitable and delivered on average +0.02% per day. It's best return during this period (of +4.25%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -5.59%) was on Monday, 5 Nov, 2018. There was initially a bullish trend during this period which started on 26 Oct, 2018 and went on till 2 Nov, 2018. The bullish trend returned +11.93% to investors. This was followed by a bearish trend that started on 14 Jan, 2019 and ended on 18 Jan, 2019. This bearish trend lost -4.54% of investor capital.

GLAXO had 6 profitable and 6 loss making months over the last year. GLAXO was profitable in more months than NIFTY-50 index. GLAXO was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -15.45% compared to -6.42% returned by NIFTY-50 index in Sep 2018. GLAXO had a longer winning streak of profitable months than NIFTY-50 index. It went up in 5 straight months (from Apr 2018 to Aug 2018) during which period it delivered +52.93%. It is interesting to note that both GLAXO and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

It's good to have money and the things that money can buy, but It's good, too, to check up once in a while and make sure that you haven't lost the things that money can't buy.
-- George Lorimer

GLAXO 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 GLAXO's volatility from 5 Nov, 2018 to 29 Nov, 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 GLAXO has significant negative skewness in it's return distribution. This indicates that GLAXO is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in GLAXO), two instruments that deserve special mention are ~MKTCAP201TO250 and BRITANNIA. They have significantly outperformed the overall market.

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