UnThreaded | Threaded | Whole Thread (13) | Ignore Thread Prev | Next
Author: Charley Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 253245  
Subject: Re: Naive upside/downside calculation Date: 7/17/1999 3:01 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Dave, I know I don't understand the implications of the log converted numbers. But the thought has struck me, penetrating the Coors, that there could be another way of normalizing the data.

I can envision that it could be necessary to calcualte the SD twice. Once for the upside and once for the downside. But, change the returns before making the calculations.

When doing the upside SD, modify the downside returns so that -50% is -100% (the upside equivilant to recover).

When doing the downside calculation, change the upside returns to mirror what its downside equivilant would be. That is +100% would be changed to +50%. and +200% would be change to +66%.

With this method, the SD's cannot be outside the possible bounds.

But maybe the results are meaningless.

Good Returns
Charley Meng
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (13) | Ignore Thread Prev | Next


Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Value Hounds

Mobileye's Growth too Hot?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.