Intraday range on stocks with different share prices

Discussion in 'Strategy Building' started by dasr, Nov 5, 2014.

  1. dasr

    dasr

    Can someone please help me with measuring range on stocks with different share prices. I'd like to measure things like range from open to high, open to low ranges etc. I can't do it in % gain or $ gain because you can't compare 5% gain on 1$ stock and the same gain on 160$ stock. In this case intraday volatility is much bigger on 160$ stock with 5% gain and same for $ gain. I don't know how to convert it so i can compare these things in excel... Thanks. :)
     
  2. Why can you not compare 5% gain on $10/share stock (A) with a 5% gain on a $100/share stock (B)?

    If you have $10,000 you can buy 1,000 of A or 100 of B.

    If either goes up 5% you make $500, the same...
     
  3. dasr

    dasr

    Because i want to compare intraday ranges/volatility between two stocks with different share price, not the gain on 10k$ position. Look at 1m chart of NFLX with 1% gain and 1m chart of IAG with 1% gain. It's not the same thing.
     
    Last edited: Nov 6, 2014
  4. Thanks. Could you post the charts and describe what differences you are referring to? Am happy to try to help if I can.
     
  5. dasr

    dasr

    Sure. :) I know the volatility is not exactly the same, but you can see the difference. and i'd like to know how can i measure it accurately. Obviously neither in % gain nor $/share. Or i just need to convert it somehow. I don't know...

    IAG
    [​IMG]

    NFLX
    [​IMG]
     
  6. How about normalising each stock's range by say its 14-day ATR?

    So take intraday High - Open (say $8) and divide by that stocks 14-day ATR (which is also a $ amount). So the result is a ratio.

    Then you can compare the two stocks.