Rolling Returns

Key Highlights

• Rolling returns help investors see how an investment performs over different time periods, not just between two fixed dates.

• It calculates returns for multiple overlapping periods, giving a clearer picture of consistency and ups and downs over time.

What Are Rolling Returns?

Rolling returns help investors see how an investment performs over different time periods, not just between two fixed dates. Instead of a one-time snapshot, it calculates returns for multiple overlapping periods, giving a clearer picture of consistency and ups and downs over time. This makes it a useful tool for assessing long-term performance trends.

Features of Rolling Returns

• A More Complete Performance Check – Instead of just looking at returns between two fixed dates, rolling returns analyze multiple overlapping periods, giving a clearer picture of how an investment performs over time.

• Tracks Consistency – Helps investors see if an investment delivers stable returns or fluctuates a lot, making it easier to gauge reliability.

• Avoids Timing Bias – Point-to-point returns can be misleading depending on when you start and end. Rolling returns remove this bias by covering all possible timeframes.

• Reveals Risk & Volatility – A wider range of rolling returns signals higher ups and downs, while a narrower range suggests a steadier investment.

• Identifies Trends – Rolling returns highlight long-term patterns, showing if performance is improving, declining, or staying steady over different market cycles.

• Easy Comparisons – They help compare different investments side by side, making it easier to choose the best option based on historical performance.

Why Rolling Returns Matter ?

Rolling returns allow you a better view of how an investment performs in several market scenarios if you are long-term investor. Unlike fixed start-and-end date returns, they show consistent trends over time, making it easier to judge reliability and make smarter investment choices.