1. What is Daily Percentage Return?

The Daily Percentage Return measures the percentage change in value from the beginning to the end of a trading day. It's a key metric for investors to assess daily performance of investments.

2. How Does the Calculator Work?

The calculator uses the daily percentage return formula:

Where:

• \( \text{Daily End} \) — Closing value of the investment (USD)
• \( \text{Daily Begin} \) — Opening value of the investment (USD)

Explanation: The formula calculates the relative change as a percentage of the starting value.

3. Importance of Daily Percentage Return

Details: Daily returns help investors track short-term performance, assess volatility, and make timely investment decisions. They are fundamental for calculating compounded returns over time.

4. Using the Calculator

Tips: Enter both the opening and closing values in USD. The beginning value must be greater than zero for the calculation to be valid.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative daily return indicate?
A: A negative return means the investment lost value during the day (closing price was lower than opening price).

Q2: How is this different from absolute return?
A: Percentage return shows relative change, while absolute return shows the actual dollar amount gained or lost.

Q3: Can I use this for any time period?
A: While designed for daily calculations, the same formula works for any single period (weekly, monthly, etc.).

Q4: What's considered a good daily return?
A: This varies by asset class. For stocks, 1% is considered strong, while for crypto, higher volatility is common.

Q5: How do I annualize daily returns?
A: Use the formula: (1 + daily return)^252 - 1 (assuming 252 trading days/year).