Hi I want to calculate drawdown so that I am in a position to ascertain if the following statements are correct:
SPX
For the period 1900 – 2010, 5% corrections occurred three times per year
on average, 10% corrections occurred once per year
on average, and 20% corrections occurred once every
3.5 years on average
Is there a way to calculate that in excel presuming I have the data. Each type of Drawdown (5%, 10%, 20%) being independent. t. For
example, the market does not typically see four 5% drawdowns and one 10%
drawdown in the same year, but rather those 5% drawdowns may compound into a
single 10% drawdown for the year
regards![Confused :confused: :confused:](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
SPX
For the period 1900 – 2010, 5% corrections occurred three times per year
on average, 10% corrections occurred once per year
on average, and 20% corrections occurred once every
3.5 years on average
Is there a way to calculate that in excel presuming I have the data. Each type of Drawdown (5%, 10%, 20%) being independent. t. For
example, the market does not typically see four 5% drawdowns and one 10%
drawdown in the same year, but rather those 5% drawdowns may compound into a
single 10% drawdown for the year
regards