HI Prerna, nice to come across this, u did a great job, there is one question bothering me, in day to day life of a investor, how practical is this to record each stock's perfromance ? can u give us some example to clarify uses of this.
In day-to-day investing, tracking rolling returns for individual stocks might be impractical due to the large volume of data involved. However, for portfolio managers or analysts assessing fund performance, rolling returns offer valuable understanding. By analyzing rolling returns, they can measure a fund's consistency across various market conditions and compare it to benchmarks. As you can see in the picture above, the returns for the investment differs when we shift it one month forward, the lowest of it is 12% and the highest is 25% with the difference of only two months between them. This helps us identify that how the investment behaves in different economic situations. For instance, it helps to identify periods of outperformance or underperformance and we can adjust investment strategies accordingly.
HI Prerna, nice to come across this, u did a great job, there is one question bothering me, in day to day life of a investor, how practical is this to record each stock's perfromance ? can u give us some example to clarify uses of this.
Thank you
Hi Pappu,
In day-to-day investing, tracking rolling returns for individual stocks might be impractical due to the large volume of data involved. However, for portfolio managers or analysts assessing fund performance, rolling returns offer valuable understanding. By analyzing rolling returns, they can measure a fund's consistency across various market conditions and compare it to benchmarks. As you can see in the picture above, the returns for the investment differs when we shift it one month forward, the lowest of it is 12% and the highest is 25% with the difference of only two months between them. This helps us identify that how the investment behaves in different economic situations. For instance, it helps to identify periods of outperformance or underperformance and we can adjust investment strategies accordingly.