San Francisco Fed

Relative Comparisons and Economics: Empirical Evidence

For most people, the idea that individuals compare themselves to others in determining their own utility, that is, their sense of happiness or well-being, rings true. Memories from the school yard, ...
Investopedia

Absolute P/E Ratio vs. Relative P/E Ratio: What's the Difference?

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Somer G. Anderson is CPA, doctor of ...
Bloomberg L.P.

Using relative performance measures and context to gain perspective in post trade TCA

When you make a trade, there will be trading costs, but what’s the best way to measure those costs? The basic principle in TCA is to compare your achieved execution price to some observed benchmark, ...
Investing

Relative Returns or Absolute: What’s More Important?

A couple of years ago, I wrote about absolute versus relative returns. Given the latest market run, I am getting a lot of questions about chasing returns, and individuals comparing themselves to the S ...