What formula would you recommend inorder to measure the performance of one stock vs. the performance of an index fund or other stock in a given period of time.
2006-07-25 07:05:26 · 3 answers · asked by Steven D 1 in Business & Finance ➔ Investing
I'd like to use Excel rather than an automatic chart make, so that I can maniuplate the data and choose an index marker of my own.
2006-07-25 07:32:57 · update #1
I would not use Excel.
fianace.yahoo.com will do that for you.
Here's IBM versus the S&P 500 for 5 years. This takes about 10 seconds to construct.
http://finance.yahoo.com/q/bc?t=5y&s=IBM&l=on&z=m&q=l&c=&c=%5EGSPC
2006-07-25 07:10:14 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Why reinvent the wheel? Use www.msn.com finance for this. The charts are automatic and updated minute by minute.
2006-07-25 14:30:53 · answer #2 · answered by cyclist 3 · 0⤊ 0⤋
Let's say cells A2:A61 contain monthly returns of your stock for the last five years, while cells B2:B61 contain monthly returns of the benchmark index for the last five years. Now you can generate a lot of interesting statistics:
=AVERAGE(A2:A61)
=AVERAGE(B2:B61)
These are monthly arithmetic average returns on your stock and benchmark.
=STDEV(A2:A61)
=STDEV(B2:B61)
These are monthly volatilities on your stock and benchmark.
=INTERCEPT(A2:A61, B2:B61)
This is the alpha of your stock relative to the benchmark.
=SLOPE(A2:A61, B2:B61)
This is the beta of your stock relative to the benchmark.
2006-07-25 15:03:59 · answer #3 · answered by NC 7 · 0⤊ 0⤋