I have been working with the equal weighted and checking to see how it works.As far as I know,there is no rebalancing,it is only equal weighted on day 1.On day 1,the index should be 100.
When I change the parameters in update,if I change the "year1" setting and the "Start date" and End Date",when I select Recalculate and Chart,the index on day 1 often no longer equals
100.Sometimes yes,sometimes no.Shouldnt the index always start at 100 on day 1?
Ami I correct that if I want to verify the accuracy of the EW comp calculations,I should be able to take the average of the percent changes in the stocks in the index
from the start to end date,and that should equal the EW comp percent change?
Please let me know if there is anything I am missing..
So the EWI is rebalanced daily.I wasnt really aware of that.
What I have been doing is changing the base date,i.e Year1,and then changing the period and time frame.I didnt grasp what was happening with the chart and why it didnt always start at 100 on day 1.
I think I understand it now.
the formula, a=barsince(year()<year1)
appears to be a day offset of the Year1 and the start date for the beginning period.So if the start date <= the first day of January(year1) ,the index will begin at apx 100.If the start is after the Year1 date,the index first value will be relative to the percent difference between year1 and start date.
FYI,when I check the output using a 2 stock portfolio,I do not get an exact equal weight percentage price change when taking the average of the 2 stocks percentage change vs the index change for the same period.Its slightly off...