Two Pitfalls in Comparing Financial Time-Series
1 Pages Posted: 4 Mar 2020
Date Written: December 20, 2013
This note outlines two pitfalls in visually comparing financial time-series such as stock prices or the values of financial portfolios. One occurs when we aim to compare growth rates (or returns), the other when we compare risk in the sense of price variability. In both cases, comparing the levels of the time-series on a linear scale may not provide insights or, worse, give a misleading impression.
Keywords: financial time-series, time-series visualisation, data graphics
JEL Classification: C18, C58, C87
Suggested Citation: Suggested Citation