carpfishingnearme| How to calculate the daily return of stocks

CarpfishingnearmeLearn about stocks every dayCarpfishingnearmeThe rate of return is one of the important skills of investors, which can help them evaluate the performance of stocks and make informed investment decisions. However, calculating the daily return of stocks is not as simple as it seems. It involves some basic mathematical formulas and concepts. In this article, we will explore how to calculate the daily return on stocks and provide some practical tips and examples to help you better understand the process.

What is the return on stock?

Stock return refers to the return that investors get from buying and holding stocks. It is usually expressed as a percentage and can be used to compare the performance of different stocks or portfolios. Returns can help investors assess the profitability of stocks and decide whether to continue to hold or sell shares.

How to calculate the daily return rate?

The basic formula for calculating daily rate of return is:

(today's closing price-yesterday's closing price) / yesterday's closing price * 100%

This formula can help us find the rate of return of the stock in one day. It is worth noting, however, that this is a very simplified formula that does not take into account other factors, such as transaction costs, tax impact, and so on.

Practical example

Suppose a stock closed at 50 yuan yesterday and 52 yuan today. So, the daily return on this stock will be:

(52-50) / 50 * 100% = 4%

That means the stock is up 4% in a day.

Matters needing attention

Although it is relatively simple to calculate the daily return, investors should also consider other factors, such as stock volatility, market trends, corporate fundamentals, and so on. In addition, investors should also note that stock prices may be affected by a variety of factors, such as news events, economic data, market sentiment and so on, which may affect the calculation of returns.

Table example

To better understand the calculation of stock returns, here is a simple table showing yesterday's and today's closing prices of different stocks, as well as their daily returns:

Stock symbol closing price yesterday (yuan) today's closing price (yuan) daily return (%) A shares 50 52 4% B shares 100 98-2% C shares 200 210 5%

By comparing the daily returns of different stocks, investors can better assess their performance and make wiser investment decisions.