How do I compare two stocks in Alphaviu?

Comparing two stocks starts with putting them on the same scale. A stock at €40 and a stock at €400 are not compared in euros; they are compared in how they moved.

What the site measures

1. On the dashboard, tick the stocks to compare, two or more.
2. Click Compare in the bar that appears.

Prices are then rebased to 100 on the first common day: each line starts at 100, and a stock at 120 has gained 20% over the period. A sentence above says whether the stocks move together or independently:

Below, a table sets their measurements side by side, with the correlation of their daily returns, pair by pair. A correlation close to 1 means the two stocks rose and fell on the same days; close to 0, that each lived its own life.

What the measurement does not say

• Which one will do better. The comparison describes the two stocks' shared past. The winner of the period is not named for the next one.
• The same thing whatever the start date. The base 100 depends on the first day chosen. If one of the stocks has less history, the common window is shortened, and the screen says so.
• A stable correlation. Two stocks loosely linked in calm times can fall together in a shock.
• Much across asset classes. A cryptocurrency and a large European stock do not have the same volatility; their lines can be compared, their risks cannot.

To compare the ways of investing in one asset (share, fund, leveraged product), the dedicated page has its own tutorial: “Comparing the ways to invest in one asset”.