Tag Archives: annualized return

Log, Annualized and Total Return

There are two returns useful to traders and investors: total and annualized return. The log return used in finance does not provide any useful information because it has no physical significance. An example from bitcoin market is included.

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CAGR Illusions

The compound annual growth rate (CAGR) is a useful but often misleading metric, especially when calculation periods are chosen purposely by sales and marketing people. Below is an introduction to CAGR, an example that shows how ambiguity arises and how … Continue reading

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Impact Of Volatility On Market Returns

The negative impact of volatility on market returns is well-known to quantitative traders but maybe not well understood by investors.

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