do we need S&P500 as well, or is it not necessary? also for the returns does it matter if you do oldest to newest date or newest to oldest because doesn't that matter the way you divided
how would you calculate the monthly returns? would you just do the adjusted close price of the last day divided by the adjusted close price of the first day? then minus 1?
Hi Ryan, Great Video as Always. I am actually trying to calculate the relative volatility between a Govt. T-Bond and a stock index returns. Can you suggest if I should directly Divide the S.D. of Index returns by the S.D. of Bond returns. OR, I should first Normalise the S.D.s by ( S.D/ Mean) to get it as a % of the Average. Then divide both the S.D. to get the Ratio.
Hey, I saw you posted this question on another video but I'll reply here too! To calculate the relative volatility between a government T-Bond and a stock index, you can directly divide the standard deviation (S.D.) of the index returns by the S.D. of the bond returns. This will give you a straightforward ratio of volatilities. However, normalizing the standard deviations by their means (thus converting them to coefficients of variation) before dividing can provide a more relative measure, considering the scale of returns, but it depends on the specific analysis context and what you intend to infer from the volatility comparison.
@@RyanOConnellCFA Thanks for the Reply. My goal is calculate the Country Equity Risk Premium for an Emerging Economy. I have the Bond default Spread for the Country and I want to scale it up by ( Volatility of Stock Index/ Volatility of T. Bond) to get the Country ERP. So, In this Context, which is the better method?
Maybe you could make a video about financial reports and ways to keep track of company financials in excel, with ways to add your own estimations for the coming 10q’s och 10k’s. It’s always great with other peoples views on things. I’m a value investor btw
Hi, so how do I go about calculating the weekly returns Edit: you already answered it in a comment below. (basically instead of downloading the data for daily, I'll download for weekly and follow the video)
Can you calculate sharpe ratio for that stock as that average of daily return -minus risk free rate / divide by standard deviation of daily returns there?
No it is not! This is just a single stocks return. You can learn to calculate portfolio return from this video: ua-cam.com/video/XQS17YrZvEs/v-deo.html
@@browniebro6183 That is surprising, maybe the show different data to users in different countries... Do you have a VPN? If so, tr using that to appear from a different country. If not use Python as shown here: ua-cam.com/video/ZgIgoTlSQU4/v-deo.html
@@RyanOConnellCFA hi sorry for the confusion, already found it. There is something wrong with my excel format. Anyways i been doing my Assignment which is regarding event study and your video really help me a lot. Thank you for sharing these useful information
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Its the best feeling when u find. video that shows exactly what u need 😩👍
I made this video because I had the same problem! 😂
Dude you are the goat. Short videos straight to the point. Instant subscribe
You are not only a great finance professional but you are also a talented educator, thanks a lot.
I really appreciate that Carlos, that is a great compliment! Thank you
do we need S&P500 as well, or is it not necessary? also for the returns does it matter if you do oldest to newest date or newest to oldest because doesn't that matter the way you divided
Thank you, excel videos are great!
Much appreciated Brante!
how would you calculate the monthly returns? would you just do the adjusted close price of the last day divided by the adjusted close price of the first day? then minus 1?
Hi Ryan, Great Video as Always. I am actually trying to calculate the relative volatility between a Govt. T-Bond and a stock index returns. Can you suggest if I should directly Divide the S.D. of Index returns by the S.D. of Bond returns.
OR, I should first Normalise the S.D.s by ( S.D/ Mean) to get it as a % of the Average. Then divide both the S.D. to get the Ratio.
Hey, I saw you posted this question on another video but I'll reply here too! To calculate the relative volatility between a government T-Bond and a stock index, you can directly divide the standard deviation (S.D.) of the index returns by the S.D. of the bond returns. This will give you a straightforward ratio of volatilities. However, normalizing the standard deviations by their means (thus converting them to coefficients of variation) before dividing can provide a more relative measure, considering the scale of returns, but it depends on the specific analysis context and what you intend to infer from the volatility comparison.
@@RyanOConnellCFA Thanks for the Reply. My goal is calculate the Country Equity Risk Premium for an Emerging Economy. I have the Bond default Spread for the Country and I want to scale it up by ( Volatility of Stock Index/ Volatility of T. Bond) to get the Country ERP.
So, In this Context, which is the better method?
Maybe you could make a video about financial reports and ways to keep track of company financials in excel, with ways to add your own estimations for the coming 10q’s och 10k’s. It’s always great with other peoples views on things. I’m a value investor btw
This is a very good idea! I will look into a video like this in Excel or Google Sheets in the future
Hi, so how do I go about calculating the weekly returns
Edit: you already answered it in a comment below. (basically instead of downloading the data for daily, I'll download for weekly and follow the video)
Concise video! Did you try =stockhistory in Excel?
Using the STOCKHISTORY function will be faster for those with Office 365 subscriptions!
Can you calculate sharpe ratio for that stock as that average of daily return -minus risk free rate / divide by standard deviation of daily returns there?
Hi, is this return on stock the same as the portfolio return?
No it is not! This is just a single stocks return. You can learn to calculate portfolio return from this video: ua-cam.com/video/XQS17YrZvEs/v-deo.html
Very helpful
what´s the difference between this one and the (close/open)-1 ?
how yearly return is calculated? is it (sum of close price / sum of open price yearly) - 1?
I made a video exactly catered to your question which you can find here! ua-cam.com/video/56CgFMoaQVo/v-deo.html
How would you be able to easily calculate for monthly?
You could use the same methodology I used here! You would just need to download monthly data instead of daily
@@RyanOConnellCFA any chance you could make a short video how to do that? I think I know how to do it, but I am second guessing myself over and over.
How do I calculate the monthly share price?
how do we calculate annual return of the stock
does yahoofinance account for past stock splits
They do if you use the adjusted close prices rather than just close prices
Can you please tell me how to find adj.closing price of a company with the data of the price, open, high, low, vol, change%
You can find it using Yahoo Finance using the method I showed in this video
@@RyanOConnellCFA I am from Sri Lanka. I couldn't find data for past five years from that website 🙂 they only show today's data
@@browniebro6183 That is surprising, maybe the show different data to users in different countries... Do you have a VPN? If so, tr using that to appear from a different country. If not use Python as shown here: ua-cam.com/video/ZgIgoTlSQU4/v-deo.html
I also want to ask since the company I'm valuing is not available in Yahoo Finance :)
@@annasantiago60 Hello Anna, what is the companies ticker?
How should I deal with missing data?
Hi, i already do the return column but the data only show 0
Hello, could you clarify what you mean by the data only shows 0?
@@RyanOConnellCFA hi sorry for the confusion, already found it. There is something wrong with my excel format. Anyways i been doing my Assignment which is regarding event study and your video really help me a lot. Thank you for sharing these useful information
@@nazwahnazihah I'm glad you got your issue resolved and found the video helpful! Best of luck on the rest of the assignment
is this the same return we use to subtract the risk-free rate from in the CAPM model? @RyanOConnellCFA