6 ms·
You plot them as ROI or other normalized value, eg by dividing the price of the stock by its initial value. Then you can compare two stocks by looking at their
by FakeComments 7y ago
You plot them as ROI or other normalized value, eg by dividing the price of the stock by its initial value.
Then you can compare two stocks by looking at their return at T1 relative to their price at T0. This solves the problem that you’re better off investing in a $5 stock going to $10 than a $100 stock going to $115, since it normalizes it to 1 going to 2 and 1 going to 1.15 respectively.
For switching you may need something more complicated, like looking at the price at Tn divide by the price at Tn-1.