fbpx

Yearly Performance BullGlobe

Yearly Performance

Looking at the period-over-period performance of an investment can also be helpful to detect longer-term trends. It is calculated similarly to the cumulative performance; however, in this case, we do not use the initial value as the base for the returns, we look at each period individually and compute the percentage change from the start to the end of the period.

In the below chart, we used the same data as the cumulative performance chart; however, we plotted the monthly returns individually. This helps us focus on period-over-period behavior, which allows us to compare the present performance of an asset in a given timeframe (e.g. month-over-month, year-over-year, etc.) with its past performance in the same timeframes.

In the above example, we can see the month-over-month returns on investment. This can be a powerful tool to identify seasonal trends and possible investment opportunities.

Above is an example of a real, interactive chart we use in our analysis to compare the year-over-year (YoY) performance of various assets in a portfolio. As we can see, the period-over-period analysis can also help us identify asset correlation trends overtime.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on pinterest
Pinterest

Discover Next

Efficient Frontier Line

Asset correlation Asset correlation is a measure of how investments move relative to one another. When assets move in the same direction at the same time, they are considered to be positively correlated. When one asset tends to move up when the other goes down, the two assets are considered...

Read More

Correlation Matrix

Asset correlation Asset correlation is a measure of how investments move relative to one another. When assets move in the same direction at the same time, they are considered to be positively correlated. When one asset tends to move up when the other goes down, the two assets are considered...

Read More

Value At Risk (VaR)

Value at Risk (VaR) Value at Risk (or VaR) is a measure that is used to statistically quantify the level of risk of a certain investment over a specific period of time. It essentially estimates the potential losses you may encounter in a given timeframe (days, months, years, etc.) for...

Read More

Historical Drawdown

Drawdown Drawdown is a measure of downside risk. It is a simple metric that tells us (on a percentage basis) how much an investment declined from its peak (its highest value) to its trough (its lowest value). By analyzing an asset’s drawdown history we can see how it has been affected by economic...

Read More

Volatility Histogram

Histogram of returns A histogram is a type of graph that plots the frequency distribution of your returns. In simpler words, it captures the frequency (number of times) in which certain returns happen and it separates them into different buckets (bins or ranges). Let’s build a quick example in order...

Read More

Asset Summary

The Portfolio Asset Summary is a table that shows some basic key information about each asset in your portfolio. Assets The first column shows the name of every asset in your portfolio. If you look up these names online, you may find tons of additional information about them. Tickers The...

Read More

Performance & Risk Metrics

What does investment performance mean? In the investment world, performance is essentially translated to returns (gains or losses) on your investment and the progress of those returns over time. Beginning Balance The Beginning Balance is the money you started investing with. In our portfolios, we set a hypothetical beginning balance...

Read More

Yearly Performance

Looking at the period-over-period performance of an investment can also be helpful to detect longer-term trends. It is calculated similarly to the cumulative performance; however, in this case, we do not use the initial value as the base for the returns, we look at each period individually and compute the percentage change...

Read More
EnglishSpanish
Scroll to Top

Join our Free Weekly Newsletter!

Are your ready to get the full financial scoop?

small_c_popup.png

discover the finance world

Account log in

Not a member yet? Sign up Now

small_c_popup.png

discover the finance world

Register Now For Free