GMDCLTD investors not showing any loss of confidence as it pauses to catch its breath
18 Jan, 201913 min read
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GMDCLTD ranked worse than it's peers today. On a longer term basis, investors in GUJARAT MINERAL DEV CORP made -0.02% per day. Friday's performance of -1.1% was a significant underperformance compared to it's daily average.
Buy-and-Hold investors in GMDCLTD experienced a maximum drawdown of -14.37% over the last three months. It returned -11.35% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +5.57%.
GMDCLTD has been underperforming the NIFTY-50 index in recent time, after having outperformed till 23 Oct, 2017. Over the last 3 years and 1 month, GMDCLTD underperformed the NIFTY-50 index on 55% days.
During the last three months GMDCLTD was mostly loss making and delivered on average -0.18% per day. It's best return during this period (of +4.38%) was on Wednesday, 21 Nov, 2018. While it's worst loss in the same period (of -8.26%) was on Friday, 26 Oct, 2018. There was initially a bearish trend during this period which started on 22 Oct, 2018 and went on till 26 Oct, 2018. The trend delivered -15.09% losses to investors. This was followed by a bullish trend that started on 29 Oct, 2018 and ended on 1 Nov, 2018. This bullish trend delivered +5.91% to investors.
On monthly basis, GMDCLTD delivered losses in more months over the last year, than profits. GMDCLTD delivered profits less regularly than NIFTY-50 index. GMDCLTD was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -16.08% compared to -6.42% returned by NIFTY-50 index in Sep 2018. GMDCLTD and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both GMDCLTD and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
"Of course, it is a little bit disingenuous to hint that hard work is the only thing you need to achieve success.
GMDCLTD 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 GMDCLTD's volatility from 22 Oct, 2018 to 20 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 GMDCLTD has significant negative skewness in it's return distribution. This indicates that GMDCLTD is very risky for short-term investment and can significantly underperform for long durations.
GMDCLTD has more chance of extreme outcomes than the NIFTY-50 index. Therefore, GMDCLTD must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than GMDCLTD.
On a general note (since you are interested in GMDCLTD), two instruments that deserve special mention are ~MKTCAP201TO250 and NIFTY-GS-15YRPLUS. They have significantly outperformed the overall market.
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