how do you compare the closing price of a company to the closing price of a stock index?
i have the numbers but how do i explain if the company has outperformed or underperformed the index?
Public Comments
- You look at the percentage change of the index and the stock over various time frames, i.e. 1 day, 1 week, 1 month, 3 months, 6 months, 1 year, 2 years, 3 years et al to get a better idea of performance over multiple time frames.
- For whatever period you're measuring, the percent increase of one versus the other. For example, if the index gained 1.1% for one day, and the individual stock gained 1.2%, then the stock outperformed the index. If it finsihed the day at 1.0%, then it underperformed the index. The onlonger the period measured, the more relevant the information.
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