14.39 +0.03 (+0.21%) Sell

Profit booking on the minds of GPP investors as it ranks better than it's peers but, has not managed to breakout

13 min read

GREEN PLAINS PARTNERS LP was among the best performers today. It returned +0.21% to close at 14.39. During the last week it returned +6.91% and saw a maximum drawdown of -1.64% before bouncing back.

[Themes containing GPP]

GPP is currently in a down trend. Over the last three months trading short signals has not been a profitable strategy for GPP's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -6.56%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to GPP.


GPP has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 3 days, GPP underperformed the SP500 index on 49% days. Which indicates that on days GPP underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months GPP was mostly loss making and delivered on average -0.09% per day. It's best return during this period (of +8.47%) was on Monday, 3 Dec, 2018. While it's worst loss in the same period (of -5.06%) was on Monday, 17 Sep, 2018. There was initially a bullish trend during this period which started on 25 Oct, 2018 and went on till 31 Oct, 2018. The bullish trend returned +2.31% to investors. This was followed by a bearish trend that started on 14 Nov, 2018 and ended on 20 Nov, 2018. This bearish trend lost -8.8% of investor capital.

GPP had 3 profitable and 9 loss making months over the last year. During the last year, GPP underperformed SP500 index on monthly return basis. GPP was also a more risky investment than SP500 index as it's worst month in the last year, Nov 2018, returned -12.54% compared to -7.28% returned by SP500 index in Oct 2018. GPP had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Jun 2018 to Sep 2018) during which period it delivered -13.4%.

You must gain control over your money or the lack of it will forever control you.
-- Dave Ramsey

GPP is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in GPP's volatility from 12 Sep, 2018 to 3 Dec, 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 GPP 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.

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

On a general note (since you are interested in GPP), two instruments that have delivered similar performance as GPP are GNTY and AZZ. They are suitable as good alternative investment candidates that can diversify your portfolio.

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