The formula to calculate the daily percentage return is:
\[ R = \left(\frac{C - O}{O}\right) \times 100 \]
Where:
The daily percentage return is a measure of the daily performance of a stock or other financial instrument. It is calculated by comparing the closing price of the instrument to its opening price, and expressing the difference as a percentage of the opening price. This metric is commonly used by traders and investors to assess the daily volatility and performance of their investments. A positive daily percentage return indicates that the instrument has gained value over the course of the day, while a negative return indicates a loss.
Let's assume the following values:
Using the formula:
\[ R = \left(\frac{105 - 100}{100}\right) \times 100 = 5\% \]
The Daily Percentage Return (R) is 5%.
