Is it possible to perform portfolio analysis in Portfolio Performance using monthly data instead of daily data?
I ask because, as on Portfolio Visualizer, in my estimates using monthly data results in more consistent and reliable calculations of Max Drawdown and Volatility, especially for long-term evaluation.
If there is a way to carry out this analysis in Portfolio Performance, could you please provide the steps to do so?
Thank you in advance for your help.
The question is, if you will find a data source which only delivers data on monthly basis.
But could you explain why you see the advantage in flattening the data lik this? I don’t see the advantage.
The reason I prefer using monthly data is that daily data introduce a lot of noise and inconsistent fluctuations in the analysis. For example, considering an ETF replicating the MSCI World, daily data show a volatility above 40% over the last 5 years, while monthly data indicate around 17%, a value more consistent with the index’s long-term trend. The same applies to the maximum drawdown.
In my opinion, when evaluating a long-term investment, excessively high values appearing in short periods can distort the analysis and provide less reliable insights. Therefore, using monthly data helps to obtain a cleaner and more stable view, useful for long-term decision-making.
This choice reduces market “noise” and makes the analysis more robust for long-term strateg
I understand your view, but keep in mind, both data is valid. Hiding a side doesn’t make the other side better.
Maybe Bolinger Bands does work a little in your direction.
Further, the performance charts can be set to daily, weekly, monthly, quarterly and yearly. Top right corner:
Hi All,
I see Fabio’s point, in my case for example: several securities (open-end funds) have monthly nav only (hence monthly quotes only), and would be very helpful to see their correct volatility, calculated on a monthly basis.
I know that Performance Chart can be set to Monthly, but that is not the case for the Return/Volatility Chart. Any chance to see that detail elsewhere or that can implemented in future versions?
