If two stocks both have a ROC equal to 10, but their stock prices are wildy different, how do I go about normalizing the ROC value?
@Stian133, ROC() in AmiBroker calculates the periods rate-of-change of ARRAY expressed as PERCENTAGE.
If you invest the same amount of money on 2 stocks, even if they have wildly different prices, and, for example, both will have a ROC of 10%, you'll get the same gain returned from both of them.
Stock A: bought 200
shares at 5.0
- Amount invested 1000.0
- ROC 10%
= Amount gained: 100.0
Stock B: bought 10
shares at 100.0
- Amount invested 1000.0
- ROC 10%
= Amount gained: 100.0
So It escapes me what you mean by "normalize" in this case. Please, elaborate your query.
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