Description
Multiply them and subtract one for simpleReturn.
A simple return is a change relative to an initial value, while a gross return is a wealth multiplier and a log return uses a logarithm of that multiplier. Dividend, split, fee and currency conventions change what is included.
Multiply them and subtract one for simpleReturn.
When to use this tool
Use Return Quote Currency Factor when you need a stated return-basis conversion or contribution.
How to use the tool and how it works
- Enter assetGrossReturn, fxGrossReturn. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read convertedGrossReturn, simpleReturn. Use the output convention below.
Require nonnegative asset and FX gross-return factors. Multiply them and subtract one for simpleReturn.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| assetGrossReturn | Wealth multiplier, equal to one plus the asset simple return. | Required. Finite number; minimum 0. |
| fxGrossReturn | Conversion-currency wealth multiplier in the quote direction appropriate to the asset. | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| convertedGrossReturn | Converted Gross Return | Required. Finite number. |
| simpleReturn | Simple Return | Required. Finite number. |
{
"input": {
"assetGrossReturn": 1.1,
"fxGrossReturn": 0.9
},
"output": {
"convertedGrossReturn": 0.9900000000000001,
"simpleReturn": -0.009999999999999898
}
}Limitations and assumptions
- Gross factor means one plus simple return; FX is the conversion-currency multiplier on the asset value. Quote direction must be supplied consistently and no rate or hedge is selected.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Reconstruct the full investment cashflow and adjustment history for performance analysis. Align horizons, quote direction and numeric return scales, and include relevant fees and taxes explicitly.
References
Similar or alternative tools
- Currency Hedged Return One Forward Term
Convert foreign wealth using spotEnd/spotStart and add hedgeFraction×(forward-spotEnd)/spotStart.
- Return Factor Log Gap
Return their natural-log difference and first/second factor ratio.