Re: Discrepancy in Portfolio Investment Overlay Graphs

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Posted by Mark on April 23, 2006 at 12:51:20:

In Reply to: Discrepancy in Portfolio Investment Overlay Graphs posted by Sreedhar on April 23, 2006 at 10:24:59:

:
: I have a found discrepancy in Portfolio/Investment Overlay -> Value and Price + Distribution graphs when I tried to compare my portfolio performance with overlaid investments for the same date range.

: In Value graph my portfolio is showing better performance compared to other investments but not in Price + Distribution graph for the same date range.

: Please let me know if I am missing something here or it is due to bug in the software.

Hi Sreedhar,

In these 2 versions of the graph there are some assumptions made in each case. In the "value" version, the actual portfolio value is plotted, and the investment's hypothetical value is plotted, as if you invested the same amount in just this investment, and at the closing price each day.

In the "Price + Distributions" version the actual price plus distribution is plotted for any investments, but a hypothetical price plus distribution is plotted for any portfolios. In creating this hypothetical plot the weightings/gains are adjusted on a daily basis.

Differences between the 2 plots can arise if you have had actual transactions that occured at a price besides the closing price for that day. If the portfolio performance is better in the value version then you may have had some purchases at a price lower than the closing price of that particular investment.

Thanks,
Mark
--
Fund Manager - Portfolio Management Software

Replies:

• Re: Discrepancy in Portfolio Investment Overlay Graphs Sreedhar 17:56:56 04/23/06 (0)