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Quant analytics: Algorithms of Simple return rate of any asset price or stock price vs continuously compounded return

(Last Updated On: November 1, 2011)

Quant analytics: Algorithms of Simple return rate of any asset price or stock price vs continuously compounded return

This is important when building time series matrices for any tool language you choose including Matlab

Ui=(Si-(Si-1))/Si-1)

Si=current stock price

Si-1=previous preiod stock price

This could be any asset price.

Continuously compounded return:

Ui=ln(Si/Si-1)

From  http://www.youtube.com/watch?v=uo2cnX5EN0E

 

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

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