Frequently Asked Questions
Returns are calculated using adjusted closing prices for each symbol, sourced from multiple data providers. The performance of an individual symbol is determined by the percentage increase or decrease between the two nearest dates when the market was open.
For portfolios, we calculate returns by using the percentage allocation of each symbol to backtest over the specified time range. Unless stated otherwise, we assume yearly rebalancing of the portfolio back to its original weights. Please note that our calculations do not take into account taxes or broker commissions.
Adjusted closing prices are modifications made to a stock's closing price to reflect its value after corporate actions, providing a clearer picture for historical analysis and performance evaluation. Corporate actions that typically lead to these adjustments include stock splits, which increase the number of shares and adjust the share price accordingly; dividends, where payouts to shareholders are factored into the price; and rights offerings, which allow shareholders to purchase additional shares, potentially diluting the stock's value. These adjustments ensure that the stock's price accurately represents its true investment value, enabling more consistent and meaningful comparisons over time.
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Adjusted closing prices are modifications made to a stock's closing price to reflect its value after corporate actions, providing a clearer picture for historical analysis and performance evaluation. Corporate actions that typically lead to these adjustments include stock splits, which increase the number of shares and adjust the share price accordingly; dividends, where payouts to shareholders are factored into the price; and rights offerings, which allow shareholders to purchase additional shares, potentially diluting the stock's value. These adjustments ensure that the stock's price accurately represents its true investment value, enabling more consistent and meaningful comparisons over time.