Re: index overlay

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In Reply to: Re: index overlay posted by Bill on November 03, 2003 at 09:18:47:

: : : Mark, I've added DJI, SP500 and NasComp as indexes for comparison to my portfolio. On the Portfolio/Investment Overlay chart, it takes the beginning value of my portfolio as the beginning value of the 3 indexes (20,000), then seems to scale the indexes to compare with my portfolio. The problem is that the NasComp, starting at 20,000 in March 2000, is currently at 1,971 (down 90%, should be down 61%); SP500 is at 8,263 (down 58%, should be down 31%); DJI is at 11,732 (down 41%, should be down 12%). This seems like the scaling is screwy. What am I missing here?

: : : Bill

: : Hi Bill,

: : In the "Value" version of this graph type any money you put into or take
: : out of your portfolio during the graph period will affect the value
: : of both your portfolio and the hypothetical index value. This can cause
: : it to be different than if you just compare the movement of the index
: : to the movement of the index's "value" with your purchase history.

: : If you look at the "Price + Dist." version of this graph you will see
: : more what it sounds like you were expecting.

: : Please let me know if that doesn't explain what you're seeing.

: : Thanks,
: : Mark
: : --
: : Mark Beiley
: :
: : Fund Manager, portfolio management software for Windows 95/98/ME/NT/00/XP
: :

: Thanks, Mark. The %s look exactly correct on the "Price + Dist." version. I'm assuming the y-axis is % of original investment.

: 2 questions now:

: 1. Can this version be scaled for % Gain, so it starts at 0% instead of 100%?

: 2. I haven't added or removed any cash from the original portfolio, but I do have a default cash acount. Does this explain the strange scaling of the "Value" version?

: Thanks much,
: Bill

Hi Bill

Glad that helped.

#1) No, you can't change the initial % off of 100 for this graph type.
#2) Hmm, if you didn't take any money out or put any money in to your
portfolio the "Value" version of the index should look relatively the
same as the "Price + Dist." version. You can do a "Portfolio Cost - Value"
graph, and if this is true, then your Cost line should be flat from
the start date through the end date that you're looking at on the Overlay
graph.

Thanks,
Mark
--
Mark Beiley

Fund Manager, portfolio management software for Windows 95/98/ME/NT/00/XP

Replies:

• Re: index overlay Bill 14:39:19 11/04/03 (1)
  • Re: index overlay Mark 19:14:02 11/04/03 (0)