GREEN DOT CORP

79.0 +0.04 (+0.05%) Buy

Are you evaluating investing in GDOT? Consider as it delivered stellar performance

13 min read

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.

[Themes containing GDOT]

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.

Trend

GDOT has been underperforming the SP500 index in recent time, after having outperformed till 8 Nov, 2018. Over the last 2 years 11 months and 3 days, GDOT outperformed the SP500 index on 57% days.

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.

"The avoidance of taxes is the only intellectual pursuit that still carries any reward.

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.

SP500 index has more chance of extreme outcomes than GDOT. Therefore, SP500 must receive a lower allocation than GDOT in your portfolio. SP500 index usually has shorter drawdown period than GDOT.

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.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Following
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{detail.name}} {{detail.trend}} 
 
If you liked what you read here ...

... 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
Share with friends   WhatsApp   Facebook   Twitter