Drawdown Nine Months Formula in Excel

Use the Drawdown Nine Months formula in Excel to quickly measure a stock’s peak-to-trough decline over a nine-month period using MarketXLS. This function is especially helpful for investors and analysts looking to gauge potential risk and market volatility by examining a security’s maximum loss within that timeframe.

Understanding Drawdown Nine Months

• Purpose and Use Cases
  The Drawdown Nine Months function retrieves historical price data over approximately the last nine months and calculates the security’s maximum drawdown (peak-to-trough decline).
• Key Benefits
  • Rapidly assess risk by understanding the worst-case drop over nine months
  • Helps in portfolio risk management
  • Minimizes manual calculations for frequent market analysis
• When to Use
  • Evaluating potential loss exposure
  • Analyzing historical performance trends
  • Comparing drawdowns across multiple securities

Syntax and Parameters

=DrawdownNineMonths(Symbol)

?? Note: The function automatically uses a nine-month window (from today minus 271 days to yesterday). You do not need to specify a date range manually.

Return Value

This formula returns a numeric value representing the nine-month peak-to-trough drawdown percentage. A more negative result indicates a larger drawdown.

Error Handling

• Returns "NA" if the specified symbol is invalid or if the data cannot be retrieved.
• If your MarketXLS license is invalid or expired, a specific licensing error message may appear.

? Pro Tip: Ensure you have a valid MarketXLS subscription to access real-time and historical data for calculating the drawdown accurately.

Examples and Usage

Basic Example

Use a standard stock ticker symbol in quotes:

=DrawdownNineMonths("MSFT")

This formula calculates Microsoft’s drawdown over the past nine months based on historical price data from MarketXLS.

Different Symbol Formats

• Regular symbol:

  =DrawdownNineMonths("MSFT")

• Index symbol:

  =DrawdownNineMonths("^SPX")

• Options symbol:

  =DrawdownNineMonths("@MSFT 110122C00020000")

• Cryptocurrency symbol:

  =DrawdownNineMonths("BTCUSD:DEFAULT")

?? Note: This function does not accept custom date inputs. It automatically sets the date range to the last nine months from the current date.

Real-World Applications

• Portfolio Risk Analysis: Quickly compare drawdowns for multiple assets to identify higher-risk securities.
• Historic Performance Study: Analyze how a stock has recovered from past drawdowns over several trading periods.

Common Questions

1. Why am I getting "NA" as a result?

   • An invalid or unsupported symbol could cause this issue. Verify the symbol and ensure you have an active MarketXLS license.

2. How often does the drawdown data update?

   • The data usually updates daily, reflecting the close price of the previous business day.

3. Can I use this function for intraday data?

   • Currently, the function relies on daily historical data. It’s not designed for real-time or intraday calculations.

4. Is there a limit to how many times I can use this function?

   • Usage limits may depend on your MarketXLS subscription plan. Check your plan documentation for any specific limits.

? Pro Tip: Use other MarketXLS analytics (e.g., Stock Return Seven Days, Total Dividends Paid) to complement your risk analysis and develop a comprehensive trading or investment strategy.