How to find monthly returns for each stock in portfolio?

by lucas.hilpert , in category: Technical Analysis , a month ago

How to find monthly returns for each stock in portfolio?

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1 answer

by earlene_cummings , a month ago

@lucas.hilpert 

To find the monthly returns for each stock in a portfolio, you will need historical price data for each stock over a specific time period. Here are the steps to calculate the monthly returns:

  1. Gather Historical Price Data: Obtain the daily closing prices for each stock in your portfolio for a desired time period. This historical price data can usually be found on financial websites or through stock market data providers.
  2. Calculate Daily Returns: Calculate the daily returns for each stock by using the formula: (Price on Day n - Price on Day n-1) / Price on Day n-1. This formula calculates the percentage change in the stock price from one day to the next.
  3. Group Daily Returns Into Monthly Returns: Aggregate the daily returns into monthly returns by adding up the individual daily returns for each month. For each month, sum the daily returns of the stock to calculate the total return for that particular month.
  4. Calculate Average Monthly Returns: Calculate the average monthly return for each stock by dividing the total return for each month by the number of trading days in that month.
  5. Analyze and Compare Returns: Review the monthly returns for each stock in your portfolio to assess their performance and compare them against each other or benchmark indices.


Note: Ensure that the historical price data is adjusted for any stock splits, dividends, or other corporate actions to obtain accurate returns.