Drawdown One Months Formula in Excel

Are you looking to track the peak-to-trough decline of a stock over the last year using Excel and MarketXLS? The Drawdown One Months formula helps you quickly measure the percentage drop from the highest price to the lowest price within the previous 366 days. This guide will show you how to use the formula, provide real-world examples, and address common questions.

Understanding Drawdown One Months

• Purpose and Use Cases
  The formula calculates the maximum drawdown (the largest single drop) for a given stock or asset within the last 366 days. It’s especially useful for risk management, portfolio monitoring, and spotting any significant drops in price.

• Key Benefits

  • Quickly identify the worst-case decline within the stated period.
  • Enhance your decision-making by focusing on downside risk.
  • Automate drawdown calculations using MarketXLS data feeds.

• When to Use
  Use the Drawdown One Months formula when you want to understand how much a stock (or any asset) could lose from its peak within a one-year lookback period. This is crucial for analyzing risk tolerance and assessing historical volatility.

Syntax and Parameters

Below is the official syntax for the MarketXLS function name DrawdownOneYear, which corresponds to the display name Drawdown One Months:

=DrawdownOneYear(Symbol)

Return Value:
• Returns the maximum drawdown (peak-to-trough percentage decline) over the last 366 days.
• A negative percentage indicates the drawdown.
• Returns "NA" if the symbol is invalid or if no data is available.

?? Note: This function automatically calculates the one-year period using today’s date as a reference. You do not need to supply start or end dates.

? Pro Tip: An active MarketXLS subscription is required to ensure real-time or up-to-date data fetching.

Examples and Usage

Here are some practical examples for different types of symbols:

1. Regular Stock Symbol:

   =DrawdownOneYear("MSFT")

   Tracks the one-year peak-to-trough drawdown for Microsoft (MSFT).

2. Index Symbol:

   =DrawdownOneYear("^SPX")

   Calculates the one-year drawdown for the S&P 500 Index.

3. Option Symbol:

   =DrawdownOneYear("@MSFT 110122C00020000")

   Evaluates the drawdown for an option contract on Microsoft stock by analyzing its adjusted price data.

4. Cryptocurrency Symbol:

   =DrawdownOneYear("BTCUSD:DEFAULT")

   Gauges the one-year drawdown for Bitcoin.

?? Note: Since the function already uses the latest available date, you do not need to pass a start or end date. MarketXLS automatically sets the period to the last 366 days from today’s date.

Real-World Applications

• Portfolio Risk Analysis: Monitor your investments in Excel to understand how each position has fared over the past year.
• Strategy Testing: Evaluate drawdowns of different assets to compare risk levels across multiple securities.
• Historical Performance Reporting: Include drawdown calculations in management reports to showcase volatility and risk.

Common Questions

1. Why is the return value “NA”?

   • The symbol provided may be invalid.
   • Data might be unavailable for the last 366 days.
   • Your MarketXLS license or data feed might be inactive or expired.

2. Does the formula update automatically?

   • Yes, as long as you have a valid MarketXLS subscription and Excel’s automatic calculation is enabled.

3. How can I improve performance?

   • Limit the number of symbols you call within the same spreadsheet.
   • Ensure your internet connection is stable.
   • Use MarketXLS caching functionality to reduce repeated requests.

4. Can I change the date range?

   • Not with this function. It is hard-coded to fetch one-year (366 days) data. To modify the date range, consider other specialized MarketXLS functions or parameters (if available).

5. Are historical dividends or splits accounted for?

   • The function uses adjusted closing prices, so splits are accounted for. Dividends typically appear as separate data but do not affect the primary calculation for drawdown.

? Pro Tip: Combine drawdown calculations with other analytics (e.g., returns over different time frames) for a comprehensive portfolio analysis.