Calculate absolute and time-weighted rates of return

[IsaacCheng9]

Summary

• Calculate absolute and time-weighted rates of return for:
  • User's entire portfolio
  • Each security in the user's portfolio
• Absolute rate of return is the traditional metric: (current value - bought value) / bought value
• Time-weighted rate of return is a new metric used by platforms like Vanguard.
  • It accounts for how long the user has held the security and extrapolates the return if they held it for a year.
  • More research must be done to ensure we implement this accurately.
  • Example of existing solution from Sharesight.

Progress

• Absolute rate of return
• Time-weighted rate of return

Related Issues

• Issue #9

[IsaacCheng9]

Added existing example from Sharesight. Interestingly, they've taken the decision to avoid using time-weighted rates of return for investments less than a year ago, seemingly because this figure would otherwise fluctuate too much.