GOKEX continues its fall as more investors loose confidence
18 Jan, 201913 min read
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GOKALDAS EXPORTS LTD. trailed the broader market today. It delivered -0.27% to close at 74.6. During the last week it delivered -1.0% and saw a maximum drawdown of -1.78% before bouncing back.
GOKEX is currently in a bearish trend. Over the last three months trading short signals has not been a profitable strategy for GOKEX's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -7.04%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to GOKEX.
GOKEX has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 10 Jun, 2016 to 16 Jul, 2018. Over the last 3 years and 1 month, GOKEX underperformed the NIFTY-50 index on 57% days.
During the last three months GOKEX was mostly loss making and delivered on average -0.11% per day. It's best return during this period (of +3.34%) was on Wednesday, 12 Dec, 2018. While it's worst loss in the same period (of -3.26%) was on Tuesday, 23 Oct, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 14 Nov, 2018 and went on till 20 Nov, 2018. This bullish trend returned +5.17% to investors.
The last 12 months saw GOKEX's investors making profits in 5 months and incurring losses in 7 months. During the last year, GOKEX and NIFTY-50 index had the same number of profitable months. GOKEX significantly outperformed NIFTY-50 index in Apr 2018, when it returned +15.9% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. GOKEX and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both GOKEX and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
"Well, I think that there's a very thin dividing line between success and failure. And I think if you start a business without financial backing, you're likely to go the wrong side of that dividing line.
GOKEX is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in GOKEX's volatility from 19 Oct, 2018 to 16 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 GOKEX has significant negative skewness in it's return distribution. This indicates that GOKEX is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than GOKEX. Therefore, NIFTY-50 must receive a lower allocation than GOKEX in your portfolio. NIFTY-50 index usually has shorter drawdown period than GOKEX.
Based on your interest in GOKEX you may find it interesting to know that NIITTECH has shown remarkable performance this year and deserves to be on every investors' watchlist.
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