First price of a calculated investment

[Djobydjoba]

Hi Mark,

If the first price of InvA is 01/01/1990
and the first price of InvB is 01/01/1995

So the first price of a calculated investment InvC (calculated with the command "Create Investment from Investments" from InvA and InvB) should be 01/01/1995.
Because the range 01/01/1990 to 01/01/1995 on the calculated investment is irrelevant and should not be kept.

That is, the rule should always be to retain, as the first price of a calculated investment, the most recent first price of the two investments (and even when the option "Update Destination for Dates When Both Sources Have Pricing (Do Not Interpolate)" is not checked).

The rule is equally true with the command "Create blended Investment": the first price of a blended investment should always be the most recent first price of all the investments used in its calculation.

The program does a great job to apply this rule at the creation of the calculated (or blended) investment. No problem here.

But later on, admit some older prices are found for an investment, because for example a better source for the quotes has been found. So, for example, prices 01/01/1985 > 01/01/1990 are added to InvA (by pasting in the Data Register of by Historical Retrieval, or by importing...). In this scenario the prices of the calculated InvC are updated too, because recalculated, and its new first price is now 01/01/1985 (and the irrelevant prices range 01/01/1985 > 01/01/1990 is added). So this is a problem.

So that would be great if this rule "the first price of a calculated/blended) investment is the most recent first price of all the investments used in its calculation" could be applied too by the algorithm in situations after the initial creation, when older prices are added afterwards on investments used in calculations.

Thanks.

[Mark]

Hi Djobydjoba,

Okay, understood. Thanks for the feedback, we'll see about getting this improved.

[Mark]

Hi Djobydjoba,

This seems to only be an issue for the "Create Investment from Investments" command. The auto updates for the blended investments are already limiting price updates to within the common date range of all source investments. Please let me know if you're seeing something different.

[Djobydjoba]

You're right, I assumed the problem was for both "Create Investment from Investments" and blended investments, but I've just played with a blended investment, adding older prices to some of its components in the Data Register, and it behaves very well. So the problem is indeed only for "Create Investment from Investments".

[Mark]

Okay, thanks for the confirmation. We'll try to get this fixed for the next release.

[Djobydjoba]

Hi Mark,

I've seen the topic here viewtopic.php?f=6&t=6486

Since 2024.18.2, can you confirm the behavior for the last price of the destination investment has been changed too?

Before this update, I think the behavior with the last price, when the option "Do not Interpolate" was off, was:

if the last price of InvA is 25/03/2024
and the last price of InvB is 26/03/2024
Then the last price of the calculated investment InvC (from InvA and InvB) was 26/03/2024.

I think the behavior was the same for blended investments, that is if one of the source investments had a last price newer than the other source investments this price was still used in the calculation of the destination investment.

Since the update, maybe the last price of the destination investment is the "older newer" price of all the last prices in the source investments? Ie:

if the last price of InvA is 25/03/2024
and the last price of InvB is 26/03/2024
Then the last price of the calculated investment InvC is 25/03/2024.

Do you confirm?

[Mark]

Hi Djobydjoba,

I think the behavior was the same for blended investments, that is if one of the source investments had a last price newer than the other source investments this price was still used in the calculation of the destination investment.

This should not be the case. They both are limited to a common date range of all their input investments.

if the last price of InvA is 25/03/2024
and the last price of InvB is 26/03/2024
Then the last price of the calculated investment InvC is 25/03/2024.

Do you confirm?

Yes, this is correct. It is the same for both "Create Investment from Investments" and also "Create Blended Investment".

From the blended documentation:

The prices will be updated for every weekday between the first and last recorded prices in all of the source investments.

From the investments to investment documentation:

The prices will be updated for every weekday between the first and last recorded prices in both of the source investments.

[Djobydjoba]

As the OP in the other post (if I've understood him well), I use "Create investment from Investments" command to do simple transformations on the prices of some investments

Just to give an example,

InvA has a unique price of 1 set to 01/01/1950
InvB is the exchange rate EUR/JPY

I've created InvC = InvA / InvB, that gives me JPY/EUR
(so I haven't to dowload the prices for this exchange rate, they are not accurate on the web because of the very high resolution of this currency pair on the decimals)
The great thing is that InvC can be then be used in a blended investment (eg. for the calculation of a JPY index).

So a very nice hidden feature with "Create investment from Investments" is the ability to transform investment prices with basic operations with a fixed number.

The OP of the other post seems to say that this doesn't work anymore.
Indeed, as you answered my question, this possibility (my example above) shouldn't work, right? The new prices in InvC shouldn't be calculated, and even with "Only update destination..." box not ticked?

But, I've just checked in my portfolio, for a reason, they are calculated... (but it seems it doesn't work anymore for the OP in the other post...)

What do you think of that?
That would be really a pity to remove this ability to do those price transformations with this command, as it is a great flexible and creative feature.

[Mark]

Hi Djobydjoba,

The date range limitation is independent of the state of the option "Only update destination for dates when both sources have pricing (do not interpolate)". That option only applies inside the common date range of the 2 investments.

In your example, I would not expect InvC to be updated. Can you reproduce this now using FM 2024.18.2? If you retrieve a price for InvB now, is InvC still updating?

Maybe we need to give options on how this date is restricted...

[Djobydjoba]

I would not expect InvC to be updated. Can you reproduce this now using FM 2024.18.2? If you retrieve a price for InvB now, is InvC still updating?

Yes. After a closer look I understand why.

First, indeed I see that for some calculated investments without any recent price for one of the sources, the last price matches with the day I've installed the update 2024.18.2.

Regarding the case I've given that still updates, here is the reason:

20240327-mer.17h46-01.png (67.97 KiB) Viewed 5063 times

I had created too another price of "1" in the future (2050). So the calculation can be performed. I didn't remember doing that.

So it looks like there is no problem, and not additional option to add