Resources
Plain answers to the questions investors ask about their returns, risk and the numbers behind them.
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Numbers explained
Cumulative vs annualized return: what's the difference?
Cumulative return is the total growth over a whole period; annualized return states that same growth as a yearly rate.
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How-tos
How do I compare my portfolio to the S&P 500?
A fair S&P 500 (SPY) comparison uses the same dates and keeps deposits and withdrawals out of your return.
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Comparisons
Spreadsheet vs portfolio tracker: what's the difference?
A spreadsheet needs transactions added by hand and kept current; a broker-connected tracker reads them from your broker.
Comparisons
Side by side: what each way of tracking a portfolio does and doesn't do.
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Spreadsheet vs portfolio tracker: what's the difference?
A spreadsheet needs transactions added by hand and kept current; a broker-connected tracker reads them from your broker.
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How-tos
Step-by-step ways to answer a question about your own portfolio, first by hand, then in SharpeShare.
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How do I compare my portfolio to the S&P 500?
A fair S&P 500 (SPY) comparison uses the same dates and keeps deposits and withdrawals out of your return.
Updated
Numbers explained
What a return figure or a risk number actually measures, why two apps can show different numbers for the same account, and a worked example for each.
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Cumulative vs annualized return: what's the difference?
Cumulative return is the total growth over a whole period; annualized return states that same growth as a yearly rate.
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What does the Sharpe ratio tell you about a portfolio?
The Sharpe ratio divides a portfolio's return above cash, such as Treasury bills, by the volatility of its returns.
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What is maximum drawdown, and how is it calculated?
Maximum drawdown is a portfolio's largest drop from a peak to a later low, as a percentage of that peak.
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How SharpeShare works
Where SharpeShare's data comes from, how each figure is calculated, and what it leaves out.
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How does SharpeShare work?
SharpeShare reads your holdings and transactions from your broker through Plaid, then calculates returns, risk and an S&P 500 comparison.
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