Godrej Group THEME

1875.57 +6.18 (+0.33%) Buy

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GODREJGRP THEME investors making the most while the sun shines

14 min read

~GODREJGRP delivered good returns today. On a longer term basis, investors in Godrej Group made +0.1% per day. Friday's performance of +0.33% was a significant outperformance compared to it's daily average.

[Theme constituents]

Buy-and-Hold investors in ~GODREJGRP experienced a maximum drawdown of -23.74% over the last three months. It lost -1.24% during this down trending period. There were both Long and Short signals during this period, while the long signals were marginally more profitable than the short signals. The net profit from Long signals was +15.01%.

Trend

~GODREJGRP has been outperforming the NIFTY-50 index in recent time. Over the last 2 years 11 months and 13 days, ~GODREJGRP outperformed the NIFTY-50 index on 52% days.

During the last three months ~GODREJGRP was mostly profitable and delivered on average 0.0% per day. It's best return during this period (of +7.17%) was on Wednesday, 10 Oct, 2018. While it's worst loss in the same period (of -5.56%) was on Tuesday, 9 Oct, 2018. There was initially a bearish trend during this period which started on 3 Oct, 2018 and went on till 9 Oct, 2018. The trend delivered -17.44% losses to investors. This was followed by a bullish trend that started on 13 Nov, 2018 and ended on 21 Nov, 2018. This bullish trend delivered +8.24% to investors.

~GODREJGRP had 7 profitable and 5 loss making months over the last year. ~GODREJGRP was profitable in more months than NIFTY-50 index. ~GODREJGRP was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -18.16% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~GODREJGRP had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Jun 2018 to Aug 2018) during which period it delivered +9.86%. It is interesting to note that both ~GODREJGRP and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

The stock market is filled with individuals who know the price of everything, but the value of nothing.
-- Philip Arthur Fisher

~GODREJGRP 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 ~GODREJGRP's volatility from 10 Oct, 2018 to 22 Nov, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 21 Sep, 2018 to 5 Dec, 2018.

Advanced/professional short-term investors should note that ~GODREJGRP has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

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

On a general note (since you are interested in ~GODREJGRP), if you are evaluating ~GODREJGRP as an investment candidate, then you should read about ~GAS which has delivered similar performance and can help diversify your portfolio.

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