I am trying to create a "Hybrid" price to do some research with. Basically what I am looking to do is create a price based upon the values of 3 other prices, each equally weighed. For example I would like to combine the values say three securities X, Y, and Z where each will constitute 33.33333% of the value of the "hybrid" price. Thus, changes in X will have a 33.3333% change in the hybrid price. Anyone willing to help me out regarding how I can do this? Thanks in advance.
Perhaps I am missing something here. But, wouldn't a simple arithmatic average do what you want. Just add the three prices togeter and divide by three. Norm
Yes I thought it would. However, say you have X at 1.000 while Z is at 200 then X won't have as big of an impact as Z. Edit: Wow. I can't believe I didn't realise how to do this. Just using a set value divided by the security price and then adding the three together would net me a "hybrid" price. DOH!