I am a new user to portfolio performance and after adding all my transactions, now I want to set-up reporting. However, I do not understand how some of the metrics and how they are calculated. I was wondering if there is a knowledge page available describing all the metrics and calculations used within portfolio performance.
Just a few examples: invested capital - I added this to my dashboard with time range YTD, but it does not reflect my current portfolio value, even more so it deviaties quite significantly absolute change - Is this only the change due to realized gains or are extra deposits in my included? capital growth within the performance overview, capital growth is mentioned. Is this realized gains only OR unrealized gains of current positions as well? neutral transferwithin the performance overview, neutral transfers is mentioned. Is this all cash deposits into my account?
Hope anyone can clarify a bit more on the above metrics or point me towards a page where I can learn more.
I don’t think there is such a description available. However, you could write one when you’ve researched the information.
One thing that is quite useful, in my opinion, is the “performance calculation” widget. It shows you the initial value, the final value, and all the different categories of changes that lead from the former to the latter. The various performance numbers are mostly just sums of some of those numbers.
The neutral transfers are your contributions and withdrawals. They are not actually performance.
The absolute change is simply the difference of final and initial value. It includes everything, even your fresh contributions. Similarly, delta includes everything except for those performance-neutral transfers.
Your invested capital is the initial value plus the neutral transfers. When considering everything from the first transaction, it is just the all-time neutral transfers, since the initial value before the first transaction was zero.
