GRAVITA INDIA LIMITED is a falling knife that can bleed you if you catch it on Tuesday. It lost -2.52% to close at 67.7. It is currently trading -65% below it's 52 week high of 199.05.
Buy-and-Hold investors in GRAVITA experienced a maximum drawdown of -13.09% over the last three months. It lost -2.66% during this down trending period. There were no long signals during this period, where the short signal generated profits of +2.66% for investors.
GRAVITA has been underperforming the NIFTY-50 index in recent time, after having outperformed till 27 Apr, 2018. Over the last 3 years and 1 month, GRAVITA outperformed the NIFTY-50 index on 47% days. Which indicates that on days GRAVITA outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
During the last three months GRAVITA was mostly loss making and delivered on average -0.02% per day. It's best return during this period (of +4.97%) was on Friday, 26 Oct, 2018. While it's worst loss in the same period (of -4.87%) was on Thursday, 25 Oct, 2018. There was initially a bullish trend during this period which started on 26 Oct, 2018 and went on till 31 Oct, 2018. The bullish trend returned +12.91% to investors. This was followed by a bearish trend that started on 31 Dec, 2018 and ended on 4 Jan, 2019. This bearish trend lost -3.62% of investor capital.
GRAVITA had 4 profitable and 8 loss making months over the last year. During the last year, GRAVITA underperformed NIFTY-50 index on monthly return basis. GRAVITA was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -39.44% compared to -6.42% returned by NIFTY-50 index in Sep 2018. GRAVITA had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from May 2018 to Jul 2018) during which period it delivered -28.02%.
To beat the market you'll have to invest serious bucks to dig up information no one else has yet.
-- Merton Miller
GRAVITA is becoming more 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 GRAVITA's volatility from 29 Oct, 2018 to 18 Dec, 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 GRAVITA has significant negative skewness in it's return distribution. This indicates that GRAVITA is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than GRAVITA. Therefore, NIFTY-50 must receive a lower allocation than GRAVITA in your portfolio. NIFTY-50 index usually has shorter drawdown period than GRAVITA.
Based on your interest in GRAVITA you may find it interesting to know that NIFTY-GS-15YRPLUS, ~MUTHOOTGRP and BRITANNIA have all shown remarkable performance and qualify to be on every investor's watchlist.
... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.
All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.
We want to empower investors with all the tools and analysis required by them to make a rational investment decision.If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute