Investment Plus: About: Comparison

COMPARATIVE EVALUATION
It is often more important to analyze investment based on relative (rather than absolute) performance. Investment Plus provides the means to compare series against one another by measuring excess returns. All of the major aspects of comparative evaluation are contained in the program.

COMPOSITE BENCHMARK
A Composite Performance Benchmark can be specified which includes up to 10 different series. Weightings can be assigned for each series in the benchmark. An incremental return can also be applied to the benchmark. This makes it possible to specify benchmarks such as the Prime Rate plus 4.0 percent. Up to 10 series can be selected for comparison against the benchmark over any available time period. The results show the performance characteristics of the benchmark and the excess returns of each series against the benchmark.

PEER GROUP ANALYSIS
The Peer Group (Universe) Analysis is used for comparisons against a like-group of indices, mutual funds or managers. Generally, the series used to comprise the peer group all satisfy some basic criteria. Choose up to 50 series to include in the peer group or universe. Up to 10 series can be simultaneously compared against the peer group over any available time period. The results show the percentile returns for the peer group over five alternate time periods that you have specified. The relative percentile rankings for each individual series is shown over the five time periods. In addition, the excess returns to the universe medians are also given.

FILTER ANALYSIS
The Filter Analysis feature is used to calculate relative average returns which fulfill certain user-specified market conditions. Investment Plus makes a complex task easy by automatically calculating filtered return and risk values. The returns of up to 10 different series can be filtered over any available time period. Returns can also be filtered against a composite performance benchmark. Three types of filter analysis that can be performed:

Absolute Ranges The average return and risk are calculated over an absolute range of values. For example, the average return and risk of the S&P 500 can be determined during periods when the CPI averaged between 5.0% to 8.0%. Use either seasonally-adjusted or non-seasonally adjusted ranges.
Relative Ranges The average return and risk are found over a range of relative values. For example, periods where the yield curve was inverted can be identified by screening long-term interest rates against short-term interest rates. Quickly find the average return and risk over periods when long-term rates were negative relative to short-term rates. Use either seasonally-adjusted or non-seasonally adjusted ranges.
Market Cycles The average risk and return are determined over rising or falling market cycles. For example, the performance for different series can be determined over periods of rising or falling interest rates or inflation.