Drawdown Five Years Formula in Excel
The Drawdown Five Years formula in Excel (powered by MarketXLS) helps you quickly measure the peak-to-trough decline over a five-year period for a given stock or security. This function is especially useful for risk analysis, enabling investors and analysts to see how much a stock price has declined from its highest point within the specified timeframe.
Understanding Drawdown Five Years
- Purpose: Returns the largest (peak-to-trough) percentage drop in a security’s price over the last five years.
- Key Benefits:
- Simplifies risk assessment by identifying significant drawdowns.
- Automates the data retrieval from the MarketXLS database.
- Ideal for comparing volatility across multiple securities.
- When to Use: Use this formula when evaluating historical drawdowns to gauge financial risks, compare performance across assets, or when seeking a quick snapshot of the worst-case decline in the past five years.
Syntax and Parameters
=DrawdownFiveYears(Symbol)
Parameter | Description | Required | Example |
---|---|---|---|
Symbol |
The ticker symbol (stock, index, option, or crypto). | Yes | "MSFT" , "^SPX" , etc. |
- Return Value:
- Returns the peak-to-trough drawdown percentage (for example, -28.50 indicates a 28.50% drawdown).
- If the symbol is invalid or an error occurs, returns
"NA"
.
?? Note: The five-year timeframe is automatically determined from today’s date (today minus 1,826 days). No additional date parameters are necessary.
Examples and Usage
Below are a few examples illustrating how to use the DrawdownFiveYears
formula in Excel:
- Using a regular stock symbol:
=DrawdownFiveYears("MSFT")
- Using an index symbol:
=DrawdownFiveYears("^SPX")
- Using an option symbol:
=DrawdownFiveYears("@MSFT 110122C00020000")
- Using a cryptocurrency symbol:
=DrawdownFiveYears("BTCUSD:DEFAULT")
? Pro Tip: If you need to review drawdowns for multiple symbols simultaneously, place this formula in cells corresponding to different tickers to compare their five-year declines at a glance.
Common Questions
-
What if I get "NA" as a result?
- This means the symbol may be invalid, there is no available data, or your MarketXLS license is not valid. Double-check the ticker symbol and ensure your subscription is active.
-
Does the formula accept specific date inputs for five-year calculations?
- This function automatically looks back five years from today. No manual date entry is needed.
-
How is the value calculated?
- It calculates the stock’s drawdown by first determining sequential peaks (cumulative maximum) and then finding the largest drop (drawdown) from the peak within the past five years.
-
Are there any performance considerations?
- MarketXLS queries real-time or historical data. Under heavy Excel usage, retrieval times may vary. For faster performance, avoid repeatedly recalculating volatile functions across many cells.
-
Where can I learn more about MarketXLS analytics?
- Explore related MarketXLS functions, such as:
- Total Dividends Paid Between Two Days In The Past
- Stock Return Seven Days
- Stock Return Fifteen Days
- Stock Return Thirty Days
- Explore related MarketXLS functions, such as:
?? Note: Always ensure you have a stable internet connection and a valid license to get accurate data from MarketXLS.