Using Adjustment Factors to Recover Unadjusted Stock Prices
Summary
The note explains how a Chinese stock daily bar series relates to adjusted and unadjusted prices. It identifies the cited index daily data as back-adjusted and shows that dividing the close by its adjustment factor can recover an unadjusted price. The example reads closes and adjustment factors for one stock over a date range, then applies that division to each row.
The answer does not provide a method for calculating forward-adjusted prices, stating that the necessary calculation is currently unavailable. It also does not explain how adjustment factors are constructed, whether the described data treatment applies to every data source, or how to validate the result around corporate actions. The example uses a stock data source despite the question also naming an index series, so users should confirm the relevant series and field conventions before applying the calculation.
Key ideas
- The cited daily index bars are described as back-adjusted data.
- Dividing the adjusted close by its adjustment factor recovers an unadjusted close in the example.
- The note says it cannot provide a calculation for forward-adjusted prices.
- Confirm data-source conventions before applying the example to other series.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.