Comparison methodology & how to read this page

How we compare

The Compare tool takes two instruments — indices, stocks, futures, currencies or commodities from the same universe — and normalises their price histories to a common start value of 100 on the earliest date shown. The chart then plots the relative growth of both instruments over the selected window, so a line at 120 means the instrument is up twenty percent from the start of the window (whether that window is 1 month, 6 months or 5 years). Absolute levels — a Sensex at 82,000 versus a Nifty at 25,000 — are meaningless for comparison; normalised relative growth is the only fair basis.

Alongside the chart we compute six summary metrics for the selected window: total return, annualised return (CAGR when the window spans a year or more), best and worst single day, maximum drawdown from any peak, and annualised realised volatility from daily log returns. Each metric is calculated independently for the two instruments so you can see the trade-off between return and risk at a glance.

Worked example: Nifty 50 vs Gold, 1-year window

Suppose you compare Nifty 50 (INR-denominated) with COMEX Gold (USD) over a rolling one-year window. The tool re-bases both series to 100 on the first trading day in the window. If Nifty 50 finishes at 118 and Gold at 128, the summary panel would report Nifty +18.00% total return with realised volatility around 13% annualised, and Gold +28.00% with realised volatility around 15% annualised.

From those numbers you can quickly derive a rough return-per-unit-of-risk view: Nifty delivered roughly 1.4 percentage points of return for every 1 percentage point of realised volatility, Gold roughly 1.9. That difference is not a recommendation to prefer one over the other — it is a factual observation about one specific window. A different window (say, 2020–2022 or 2013–2015) would produce very different numbers.

Volatility, explained

Realised volatility on this page is the annualised standard deviation of daily log returns over the window. For an Indian equity index, an annualised vol reading in the low teens is historically normal; readings above 20% typically indicate a stressed regime (2008, March 2020, October 2024). For commodities and single stocks, 20–35% is the norm; for many cryptocurrencies, 60–90% is not unusual. Higher volatility does not automatically mean higher risk of loss — it means larger movement in both directions — but it does mean that the same percentage return arrived through a wider path.

Volatility numbers on this page are backward-looking. They tell you how the instrument moved during the window that has already happened; they do not predict how it will move going forward. Implied volatility (derived from option prices) is a different, forward-looking metric — see our Option Analysis page for that.

Total-return limitations you should know

Total return on this page is calculated from the price series alone. It does not include the following, which matter for a real portfolio comparison:

• Dividends and coupons — for individual stocks and index-ETF proxies, the actual investor return is price return plus dividends reinvested. For Nifty 50 the dividend yield has been ~1.2–1.6% p.a. in recent years; for Sensex ~1.0–1.4% p.a. So a "+15%" price return on this page for Nifty 50 understates a real dividend-reinvesting investor's return by roughly that amount over one year.
• Transaction costs, STT/GST, brokerage and slippage — the chart assumes zero cost trades. A frequently-rebalanced comparison overstates realistic returns.
• Taxes — long-term and short-term capital gains, dividend taxation and STT differ across instruments and holding periods. The chart is pre-tax.
• Corporate actions — for individual stocks, splits and bonus issues are typically already adjusted in the source price series (Yahoo Finance uses adjusted close), but not all data providers normalise the same way. If you see an unexplained cliff on the chart, verify against the exchange website.

Currency effects

When you compare two instruments quoted in different currencies — for example Nifty 50 (INR) against the S&P 500 (USD) or Gold (USD) — the chart plots each instrument in its own quotation currency and then rebases both to 100. That means the resulting relative-growth line for the foreign-currency instrument reflects price return in its own currency, not the return an INR-based investor would have earned.

A concrete illustration: if the S&P 500 is up 20% in USD over a window during which USD/INR strengthens 5% (rupee weakens 5%), an INR-based investor holding an S&P 500 proxy would have earned closer to 26% in rupee terms (roughly 1.20 × 1.05 − 1). Conversely, if the rupee had strengthened 5% against the dollar, the INR return would have been closer to 14%. The Compare page does not perform this currency conversion — you need to layer it on separately when analysing cross-currency comparisons. For quick currency context, check the Currency & Commodity briefing.

Frequently-asked questions

Which windows are available?

1 month, 3 months, 6 months, year-to-date, 1 year, 3 years, 5 years and maximum-available. Longer windows compute annualised (CAGR) returns; shorter windows show cumulative return.

Can I compare a stock with an index?

Yes. Any two instruments the platform tracks — including single stocks, indices, futures, currencies and commodities — can be compared. The methodology described above works identically across asset classes.

Why is the maximum-drawdown number so large on some instruments?

Maximum drawdown is the deepest peak-to-trough loss during the window, in percentage terms. Volatile assets (small caps, single stocks, cryptocurrencies) routinely show 30–50% drawdowns even during positive-return windows. Broad indices typically show smaller drawdowns because their components diversify away idiosyncratic moves.

How often does the data refresh?

Prices refresh continuously while markets are in session (sourced from Yahoo Finance with Upstox and TradingView as fallbacks). The Compare page recomputes metrics on every window / instrument change.

Is this investment advice?

No. The Compare tool is a factual comparison of historical price data. Past performance is not a reliable indicator of future results. Please read our Risk Disclaimer.

Data sources & disclosures

Historical price series are sourced primarily from Yahoo Finance, with Upstox and TradingView as secondary fallbacks. All metrics on this page are computed client-side from the returned OHLC bars. Nothing here is investment advice.