Estimating a Fund’s Annualized Return from Daily Prices

Summary

This Chinese-language note shows a calculation for plotting a fund’s annualized return through time from historical daily closing prices. It retrieves trading-day bars for a specified fund, compares each later close with the initial close to obtain cumulative return, and raises the growth factor to an exponent based on a 250-day trading-year convention and the elapsed observation count. The resulting series is plotted and saved alongside dates.

The author explicitly says the correctness of the annualized fund return has not been checked. The snippet gives no validation, comparison with an alternative annualization method, or discussion of how the formula behaves with losses, irregular trading intervals, or distributions. It should therefore be read as an unverified calculation example rather than an established measure of fund performance.

Key ideas

• The method derives cumulative returns by comparing each daily close with the first observed close.
• It annualizes each cumulative return using a 250-trading-day convention and elapsed bar count.
• The calculated series is plotted over time and exported with its dates.
• The author warns that the correctness of the annualized return output has not been verified.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.