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Investment Overlay graph start values

Questions on using, creating, or understanding data in Fund Manager graphs.

Postby Djobydjoba » Sat Jun 10, 2017 5:49 am

Hi Mark,

In the Investment Overlay graph, I wonder why all the invesments don't always start precisely at 100%. Very often, there is an offset. Is there any particular reason ?

20170610-sam.14h36-01.png
20170610-sam.14h36-01.png (19.76 KiB) Viewed 12143 times
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Postby Mark » Sat Jun 10, 2017 6:33 am

Hi Djobydjoba,

Yes, this is the intended behavior. The first plotted point includes changes for that date. For example, if your graph starts on Jan 1, the plotted point for Jan 1 will be the change from Dec 31 to Jan 1. Dec 31 in this case would be the 100% point.
Thanks,
Mark
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Postby Djobydjoba » Sat Jun 10, 2017 6:56 am

Ok, thanks. And I should have read the help :oops: : "The normalized price is the price for the given date divided by the closing price for the day prior to the beginning of the graph."

As soon as we know the rule it's OK. I think it gives a perception of slight inaccuracy though. The comparaison graphs from other softwares seem very often to start à 100%. Anyway, just a personal feeling.
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Postby Djobydjoba » Sat Jun 24, 2017 11:30 am

Hi Mark,

For the Portfolio/Investment overlay graph type I guess the normalized price (100) is also the day before the start date for the graph ? And this time I think it is not mention in the help :lol: (for this type of graph).

This behavior bugs me, I can't get used to it. My mind wants to see on the graph the same start values. Could it be an option?

Thanks
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Postby Mark » Sat Jun 24, 2017 12:02 pm

Hi Djobydjoba,

Yes, you are correct, the Portfolio/investment overlay graph works the same.

This behavior makes the graphs consistent with reports. Performance on start/end dates are always included. We could consider making it an option. It does create some confusion.
Thanks,
Mark
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Postby Djobydjoba » Sat Jun 24, 2017 12:39 pm

Found a graph from Bloomberg : http://cdn.oilprice.com//images/tinymce/Rakesh0601A.png
Generally the normalized price is visible in other softwares.

It remains a minor suggestion. I don't want to give the impression that it's important.

Thanks.
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Postby Mark » Sat Jun 24, 2017 12:54 pm

Hi Djobydjoba,

Maybe we could plot the day prior to the specified graph start date, to illustrate the point where it starts. For example, if you choose to start on 1/1/17, we would plot the normalized 100 value on 12/31/16, and then the same 1/1/17 initial value as shown today.
Thanks,
Mark
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Postby Djobydjoba » Sat Jun 24, 2017 1:22 pm

I had the same idea, if consistency with reports has to be preserved it could do the trick.

And I think the confusion we can have if we select a start date and it's the day prior to this date that is displayed is not as big as the confusion we can have when we don't see the normalized 100 value.
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Postby investor425 » Fri Dec 08, 2023 4:02 am

Hi Mark,

I have a similar issue, but I am probably just not going about things correctly, and am really hoping you might be able to advise.

I have a subportfolio.

In that subportfolio I have 4 ETFS, all purchased on the same day, each at their own different purchase prices (obviously).

I created a "Portfolio/Investment Price + Dist overlay" graph containing the subportfolio, as well as it's component ETF's.

I've set the date range on the graph to "earliest transaction to date" in the "Predefined ranges" dropdown.

What I am trying to see is the relative performance, in graph form, of each of my ETF investments relative to the other, and to the subportfolio, over that date range.

So, if over the date range specified, one ETF goes up 10% from the price I paid, and another goes up 5% from the price I paid, the first line (representing the first ETF) should show a rise of 10% over that date range, and the second line (representing the second ETF) should show a rise of 5% over that date range. I am expecting both to start at the same 100% starting point on the right, and the end points of the lines of those two ETFs should end at 110% and 105% respectively.

That way the graph shows me at a glance how each of my investments performed relative to the other over the investment period, as well as the subportfolio which shows how the subportfolio reacted to the diversifying properties of it's component ETFs.

Right now what happens is, since each of the lines start at different points on the left Y axis, it is impossible to tell from looking at the graph which investment did any better than the others. The one starting lowest down on the left Y axis might have done better than the others, even though it's endpoint at the end of the date range (the right side of the graph for that line) ends up lower than the other lines.

So I basically want a graph which at a glance shows me the relative performance of my different investments.

This is so basic that I am sure there is a way to do this and I am sure I am simply going down the wrong path, so looking forward to your advice.

Thanks very much!
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Postby Mark » Fri Dec 08, 2023 9:41 am

Hi investor425,

Since you're plotting the "Price + Dist" version of this graph, the performance shown is of the "price + dist" (not value), which for investments can go up/down even when you don't own any shares. This isn't the same for a sub-portfolio. So, since you're starting the graph on the date where you purchased, there will be some performance movement in the investments, but not in the sub-portfolio on the first date. The performance movement in the investments is based off share price movement on that date. So, where they are first plotted is a result of the price change on that date. Since you're interested in how they performed since you bought them, if you change the start date to the day after you purchased, you should see things move as you expect, as at this point you own all items, and everything is value weighted when calculating performance. Alternatively, if you use the "Portfolio/Investment(s) Overlay / Value" graph this graph will work more as you're expecting. The value version of this graph plots values of everything, as if you invested the same money into each overlayed line. If you select "Help / Help on Graph..." while in either of these graph types you can read a comparison/explanation of these 2 graphs.
Thanks,
Mark
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Postby investor425 » Sat Dec 09, 2023 2:59 pm

Thank you, setting the date to the next day worked best for me because I get to see percentage increases on the left hand side.

The alternative value version of that graph shows actual portfolio value which means the graph will tend to look more volatile as prices rise, even though the percentage movement is the same.

I appreciate your always helpful comments, Mark and incredible customer support.
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