Re: Graphing portfolio liquidity

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Posted by Tim on January 22, 2007 at 14:30:19:

In Reply to: Re: Graphing portfolio liquidity posted by Mark on January 22, 2007 at 13:20:33:

: : First, would just like to say that I'm an EXTREMELY satisfied user of approximately 7 years. Have always very much appreciated your graphing functions, in particular the ability to compare my own portfolio against indexes over any arbitrary interval, and likewise the "stacked value" functions. Great for retrospective analysis.

: : The types of companies I tend to invest in are rather small and illiquid. While the portfolio has delivered a 7 year compound ROI >50%, I have long recognized that the speed with which I could dispose of a position (or indeed, the entire portfolio) is an important risk consideration.

: : With that as background...

: : How difficult would it be to add a liquidity graphing function? I might envision a graph of "days to liquidate" or something of that nature, comparing one's current share count to a moving average of daily trading volume. Of course for the entire portfolio, it could be a weighted average for all securities.

: : Don't have much interest in technical analysis, but do this and I will upgrade tomorrow! What do you think?

: Hi Tim,

: Glad to hear you've been enjoying FM, that is definitely good to hear.

: Do I understand correctly that you're trying to see how long it would take to sell your shares, because these shares don't generally have enough trading volume to easily sell all of them? This isn't something I've heard requested before... If I did understand correctly this probably wouldn't warrant a whole new graph type, but it might be something we could consider as a custom report field.

: Thanks,
: Mark
: --
: Fund Manager - Portfolio Management Software

I believe it would be more useful as a graph, as the number of shares held, along with average trading volume, are dynamically changing. That's what I like so much about your "stacked value - symbol" graph, the way it gives me a retrospective look at the dynamically changing portfolio composition (relative weighting of individual components).

What would be great would be if such a liquidity graph could appear directly underneath the graph depicting overall portfolio performance, or the price/volume graph if you were looking at an individual holding.

Replies:

• Re: Graphing portfolio liquidity Mark 15:15:12 01/22/07 (0)