53.52 +0.3 (+0.56%) Sell

NGG investors looking to add more to current positions

13 min read

NATIONAL GRID PLC (Foreign) delivered good returns on Thursday. It grew by +0.56% to close at 53.52. On a day when the overall market breadth was 35%, it closed higher than 15% of the market. In comparison, the benchmark SP500 index closed today at -0.0002%.

[Themes containing NGG]

NGG is currently in a down trend. The previous short signal in NGG has not been profitable for investors in general. If you are short on NGG at current levels please make sure that your allocation is limited and that your portfolio is well diversified.


NGG has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 9 days, NGG underperformed the SP500 index on 49% days. Which indicates that on days NGG underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months NGG delivered losses on 53% days. However, it still managed to end this period in a profit. It's best return during this period (of +2.65%) was on Wednesday, 10 Oct, 2018. While it's worst loss in the same period (of -3.87%) was on Thursday, 15 Nov, 2018. There was initially a bearish trend during this period which started on 21 Sep, 2018 and went on till 26 Sep, 2018. The trend delivered -3.66% losses to investors. This was followed by a bullish trend that started on 5 Nov, 2018 and ended on 7 Nov, 2018. This bullish trend delivered +3.23% to investors.

On monthly basis, NGG delivered losses in more months over the last year, than profits. NGG delivered profits less regularly than SP500 index. NGG was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -10.56% compared to -7.28% returned by SP500 index in Oct 2018. NGG had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Jul 2018 to Sep 2018) during which period it delivered -7.75%. It is interesting to note that both NGG and SP500 index significantly outperform during months when quarterly/annual results are announced.

An investment in knowledge pays the best interest.
-- Benjamin Franklin

NGG 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 NGG's volatility from 18 Sep, 2018 to 15 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that NGG has significant positive skewness in it's return distribution. This indicates that investors can expect NGG to recover from drawdowns quickly. Which makes NGG a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in NGG you may find it interesting to know that TWTR, LULU and AMD are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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