13.3 -0.05 (-0.37%) Buy

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

15 min read

GLOBOFFS underperformed broader market today. On a longer term basis, investors in GLOBAL OFFSHORE SERV LTD made -0.25% per day. Friday's performance of -0.37% was a significant underperformance compared to it's daily average.

[Themes containing GLOBOFFS]

Buy-and-Hold investors in GLOBOFFS experienced a maximum drawdown of -41.35% over the last three months. It gained +23.72% during this strong 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.


GLOBOFFS has been underperforming the NIFTY-50 index in recent time, after having outperformed till 11 Jan, 2016. Over the last 3 years and 1 month, GLOBOFFS underperformed the NIFTY-50 index on 55% days.

GLOBOFFS returned losses on 55% days in the last three months. During this time, it delivered on average +0.46% per day. It delivered it's best daily return of +19.86%, during this period, on Friday, 9 Nov, 2018. There was initially a bullish trend during this period which started on 6 Nov, 2018 and went on till 13 Nov, 2018. The bullish trend returned +59.9% to investors. This was followed by a bearish trend that started on 14 Nov, 2018 and ended on 19 Nov, 2018. This bearish trend lost -26.92% of investor capital.

GLOBOFFS had 3 profitable and 9 loss making months over the last year. During the last year, GLOBOFFS underperformed NIFTY-50 index on monthly return basis. GLOBOFFS was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -34.44% compared to -6.42% returned by NIFTY-50 index in Sep 2018. GLOBOFFS had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from May 2018 to Oct 2018) during which period it delivered -63.96%. It is interesting to note that both GLOBOFFS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"The man who begins to speculate in stocks with the intention of making a fortune usually goes broke, whereas the man who trades with a view of getting good interest on his money sometimes gets rich.

GLOBOFFS 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 GLOBOFFS's volatility from 22 Oct, 2018 to 18 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 GLOBOFFS has significant negative skewness in it's return distribution. This indicates that GLOBOFFS is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in GLOBOFFS), two instruments that have delivered similar performance as GLOBOFFS are SATHAISPAT and ORTEL. They are suitable as good alternative investment candidates that can diversify your portfolio.

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