Hello, I'm trying to make sense of the Wolfram Alpha daily return charts. I'm sorry if this doesn't belong in this section, I couldn't think where else to put it. It was either this or options trade... http://www.wolframalpha.com/input/?i=jpm We'll use JPM as an example. If these are daily returns, what does the 5 day return mean? is it 5 day returns for 1 year? or two years? If so, how does it get a distribution for 250 days then? I'm confusing number of data points for the number of days, and I just don't know how to interpret the "daily return" charts, when they are represented by 5, 20, 50, 100 days... Would anyone be able to help clarify this for me? Thanks so much. Erol
================= Erol; What does 5 day return mean-NOT much. six days shalt thou labor.................. You're Welcome. Frankly with slippage & comissions, NOT much at all. Weekly charts are helpful; but bull & bear cycle/many YEARS.Another clue, look how seldom if ever you will see any moneymanager post ''5day returns''LOL............................................................................................................. Wisdom is profitable to direct; thanks for question. Murray t turtle
I guess the 5 day returns are computed by compressing the daily chart to a 5 day chart, and so on. The number will depend on starting point but this does not affect the distribution. As far as trading goes, the whole analyis in that webpage is useless. I mean it is a total waste of cyberspace. Nobody, I mean nobody, with basic experience on how the markets operate will base any trading decisions on such trivial stuff. They are impressive only to people unfamiliar with trading. I wonder why they will even get involve with such trivia. Only the alpha, beta and R^2 are useful for allocation.