Start Visualizing Your Wealth Properly

Canopy Team
Sep 18, 2018 · 2 min read
  • How to Sharpen your investment Skills & Instincts

A typical way to do this is by having an Annualized IRR versus Profit Dashboard at your disposal. An example of this can be found below.

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Salient points to note are -

  • Time Period for Calculations: All calculations are for the time period that starting the latest of First investment made in that security / Starting of the Account history with Canopy / 1 Jan 2017 and ending the previous business day. For example …
  • if your Canopy account history starts in 15 Feb 2016, this particular asset was bought on 31 Aug 2016, the IRR shown is from 1 Jan 2017 to the previous business day.
  • if your Canopy account history starts in 1 Mar 2017, although you bought this particular asset way back on 12 Sep 2016, the IRR shown is for the period from 1 Mar 2017 to the previous business day.
  • if your Canopy account starts on 1 Mar 2017, you bought this asset on 15 Oct 2017 then the IRR is for the period 15 Oct 2017 to the previous business day.
  • Currency of Calculation: Unless otherwise specified all calculations are in USD. All investments in non USD currencies are converted into USD at prevailing spot rate (i.e. IRR will take Fx movement into account for non USD investments)
  • Y-Axis: Annualized Internal Rate of Return (IRR) for that particular investment for the time period mentioned above.
  • X-Axis: Profit made (typically in USD) on that particular investment. The profit includes all coupons and dividends. All investments are marked to market to the previous business day’s closing prices.
  • Size of each Bubble: Proportional to the amount invested. This calculation is simply the sum of all Purchase and Transfer In tickets (and ignores Sale and Transfer Out tickets). Therefore for securities where there is a lot of in and out trading (i.e a lot of Purchase tickets) this number will likely be a little inflated. Please contact Canopy in case you want this calculation modified.
  • Position Closed selector: tells you whether this particular dashboard looks at open positions, closed positions or both.


Financial Technology

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