No. of 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
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
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 Glassdoor #1 Company to Work For 2015! 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.
Advertisement