Drawdown Two Years Formula in Excel

The Drawdown Two Years formula in Excel with MarketXLS helps you quickly calculate the peak-to-trough decline for a given ticker symbol over a two-year span. This powerful function allows investors and analysts to measure how far a stock (or other tradable instruments) has fallen from its highest point, providing valuable insights into risk and volatility.

Understanding Drawdown Two Years

• Purpose and Use Cases: The Drawdown Two Years formula is designed to measure the percentage decline from the highest stock price to the lowest point over a 24-month period.
• Key Benefits:
  • Quickly evaluate a stock’s historical risk profile.
  • Compare multiple equities’ drawdowns for risk assessment.
• When to Use:
  • Assessing the worst-case drop in a stock to gauge risk before investing.
  • Evaluating recovery potential after market downturns.

Syntax and Parameters

=DrawdownTwoYears(Symbol)

? Pro Tip: You can reference a cell containing the symbol or provide the symbol directly in quotes for real-time results.

Return Value:
A numerical value representing the percentage drawdown over the specified two-year period. If the function encounters an invalid symbol or license issue, it returns "NA".

?? Note: The drawdown percentage is returned as a positive or negative number, depending on data. Typically, a drawdown is negative (e.g., -20.45%).

Examples and Usage

Below are several ways to use the formula with different symbol formats and date references:

=DrawdownTwoYears("MSFT")                    ' Regular stock symbol
=DrawdownTwoYears("^SPX")                    ' Index symbol
=DrawdownTwoYears("@MSFT 110122C00020000")   ' Options symbol
=DrawdownTwoYears("BTCUSD:DEFAULT")          ' Cryptocurrency symbol

' Referencing a cell:
=DrawdownTwoYears(A1)

' Using direct dates or Excel date text functions (for demonstration; 
' requires a valid symbol in place of the date in real usage):
=DrawdownTwoYears("2024-03-15")
=DrawdownTwoYears(TEXT(A1,"yyyy-mm-dd"))

1. Enter the function into any cell.
2. Provide a valid ticker symbol or reference a cell containing the symbol.
3. Press Enter to see the two-year drawdown percentage.

? Pro Tip: Use MarketXLS’s real-time data refresh to monitor drawdown changes automatically.

Common Questions

Why am I getting "NA"?

• Ensure you have a valid MarketXLS license and a correct symbol. Invalid symbols or license checks will return "NA".

How do I interpret the output?

• A negative value (e.g., -25.50) indicates the peak-to-trough drop as a percentage. A larger magnitude (e.g., -40.00) means a more significant drawdown.

Are there any performance considerations?

• The function retrieves data from MarketXLS servers, so a stable internet connection is required. Large workloads or frequent refreshes may impact performance due to repeated data calls.

Can I use this for other time periods?

• This specific function focuses on a two-year window. MarketXLS provides other time-based formulas, such as "Stock Return Thirty Days," to assess different intervals.

?? Note: For the best results, keep your MarketXLS add-in updated and confirm your symbol’s validity to avoid inaccurate or incomplete data.