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

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.

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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.