GDOT delivered stellar performance today. On a longer term basis, investors in GREEN DOT CORP made +0.16% per day. Friday's performance of +0.05% was a significant outperformance compared to it's daily average.
GDOT showed a down trend over the last 3 months. During this period GDOT lost -8.08% and saw a maximum drawdown of -20.68%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in GDOT till volatility reduces and a clear trend emerges.
GDOT returned losses on 51% days in the last three months. During this time, it delivered on average -0.08% per day. It delivered it's worst daily return of -8.89%, during this period, on Monday, 19 Nov, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 12 Oct, 2018. The trend delivered -15.74% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 2 Nov, 2018. This bullish trend delivered +8.46% to investors.
GDOT had 8 profitable and 4 loss making months over the last year. During the last year, number of profitable months of GDOT and SP500 index were the same. GDOT significantly outperformed SP500 index in May 2018, when it returned +17.2% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. GDOT had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year.
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GDOT is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in GDOT's volatility from 11 Sep, 2018 to 19 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that GDOT 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.
On a general note (since you are interested in GDOT), two instruments that have delivered similar performance as GDOT are VICR and OHAI. They are suitable as good alternative investment candidates that can diversify your portfolio.
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