Author Topic: Your Percentile vs All Accounts: a useful metric?  (Read 6788 times)

brother7

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Your Percentile vs All Accounts: a useful metric?
« on: November 21, 2014, 06:45:48 PM »
It seems to me that one's percentile in the pool of ALL portfolios of VARIOUS ages and VARIOUS WAIRs isn't a very useful metric by which to measure one's portfolio performance.
The other 2 metrics, vs Similar Age Accounts and vs Similar Age and Similar WAIR Accounts, seems a more reasonable metric to me.

I'm not complaining. I just want to understand the relevance of the numbers.

turing

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Re: Your Percentile vs All Accounts: a useful metric?
« Reply #1 on: November 21, 2014, 07:16:23 PM »
Good question.  We decided to provide all 3 percentiles on the tool so uses could see how they compare to different subsets.   Some users might want to know how they are doing vs all other investors.  Others might want to see how they do vs only users with the same age or same risk.

Not perfect analogy, but sort of like mutual funds comparing themselves to SP 500 vs only small company index.

In terms of our marketing on the site we chose one metric on the home page for simplicity.  Having one percentile that is easy to understand vs having multiple percentiles vs having another percentile that takes more explaining.  We chose simplicity and then share more details on the full results page.

https://www.peertopeerquant.com/our-results

We made the same decision with ANAR vs XIRR.  We display one rate, ANAR, on most of the site but our results page gives the XIRR too.

I hope this answers your questions.  Let me know if I didn't.

brother7

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Re: Your Percentile vs All Accounts: a useful metric?
« Reply #2 on: November 21, 2014, 10:24:13 PM »
Thanks for the quick, detailed and on-point response.  ;D