Annualized Stock Return Distribution Calculator and Chart Maker
Use this calculator and chart maker to compute and display the frequency distribution of annualized returns for all buy and sell combinations for a specified period for any stock listed on a major U.S. stock exchange and supported by Quandl.
All closing prices are adjusted for splits and dividends. Calculator does not support exchange-traded funds (ETFs), mutual funds and indexes. The calculator defaults to monthly closing prices for date periods over four years. The maximum number of Annualized Return Categories is 5000.
The calculator computes the annualized return for each buy and sell combination for the specified period and places the return into the appropriate annualized return category. After all returns have been computed, the calculator computes the number of returns in each return category. Finally, it computes the frequency (expressed as a percent) of returns in each category by dividing the number of returns in the category by the total number of returns.
The frequencies for all categories are displayed on a chart and summarized in a table.
Each return category is defined by an annualized return lower and upper limit. The interval between the limits of each return category is the same and is equal to the difference of the maximum annualized return and minimum annualized return divided by the number of categories. The lower limit of the first return category is the minimum return. The upper limit of the first category is the minimum return plus the interval. The lower of limit of the each succeeding category is the upper limit of the previous category plus 0.01. The upper of limit of the each succeeding category is the upper limit of the previous category plus the interval.
To narrow the interval between the limits of the return categories increase the number of categories.
Seemingly large annualized return values result from buy and sell returns of just a few days or months.
Note that the actual annualized returns are not shown on the chart. The lower and upper limits of the return categories are displayed in the summary table.