Extract annualized returns from daily stock returns timetable

I have daily stock price data. I have converted into returns data using price2ret. That yields a timetable with daily resolution of stock returns, like this:

MCStest =

500×6 timetable

   Time               AAP                     AAPL                    ABBV                    ABC             ABI1    ABKFQ
    __________    ____________________    ____________________    ____________________    ____________________    ____    _____
    2020-07-22       0.013707642305162     0.00280409009336856     0.00307992438542299    -0.00326655463454243    NaN      NaN 
    2020-07-23     -0.0068967521334406     -0.0455115537324622      0.0033775143352021     0.00212169432446765    NaN      NaN 
    2020-07-24    -0.00741282613996586    -0.00247725440494493    -0.00938486512623912    -0.00259451795841217    NaN      NaN 
    2020-07-27    -0.00298727460325256      0.0237002892885753    0.000515318702652003     0.00231223732652311    NaN      NaN 
    2020-07-28    -0.00435635367283988     -0.0164328805565214    -0.00463199477558924     -0.0181715901086798    NaN      NaN 
    2020-07-29      0.0138191825300191      0.0191738741676468     0.00310260006427848      0.0117479958593129    NaN      NaN 
    2020-07-30      0.0314407069276961      0.0121001434206156    -0.00999938572708972     -0.0110310038784591    NaN      NaN 
    2020-07-31     -0.0178539309887822      0.0897275956093941     -0.0117658008422978     -0.0193824374329337    NaN      NaN 
    2020-08-03      0.0160483474539514       0.025202338284134      0.0108520693847497      0.0428187978742718    NaN      NaN 
        :                  :                       :                       :                       :               :        :  
    2022-07-05      0.0499263972648275      0.0189303849956542    0.000845532164624849      -0.016976456423204    NaN      NaN 
    2022-07-06    -0.00295788407265366     0.00960725727445775    -0.00909521038280395    -0.00618178240261659    NaN      NaN 
    2022-07-07      0.0122113858017691      0.0239994092995804    -0.00347484374147837     0.00679036580577988    NaN      NaN 
    2022-07-08     -0.0059244785831444     0.00471473565344578     0.00559231602896037      0.0125023736537991    NaN      NaN 
    2022-07-11    -0.00628437471824008     -0.0147578711265199     0.00248609048110571    -0.00862718568208682    NaN      NaN 
    2022-07-12      0.0114959215337574     0.00683370045180129    -0.00502521841991656    0.000422275898180835    NaN      NaN 
    2022-07-13     0.00816289917473986    -0.00253667181964532    -0.00203330492595767     -0.0160565948537854    NaN      NaN 
    2022-07-14     0.00361242103389985      0.0204824905235388     -0.0112390642469217     0.00302005937162174    NaN      NaN 
    2022-07-15      0.0145129259902832       0.011450121509914      0.0211383367689322      0.0192804475390485    NaN      NaN 

Display all 500 rows.

I would like to compute the annualized returns for each of the stocks in the table. This is proving surprisingly hard to find so I thought I would post the question. There are all kinds of more complex metrics described clearly. How do I compute the annualized returns? Ideally, it'd be nice to be able to do this using either continuous or periodic methods. Also, as you can see I need a method to clear NaN data out of the table and apparently I'm not using rmmissing correctly. I presume there's a simple way to do this without requiring advanced toolboxes that future readers of this question might not have, but toolbox-based functions would be fine too. Would also be great to be able to compute returns from a weighted portfolio of the same returns given a table of returns and a table of weights.

Thank you for your help

[Siddharth Bhutiya]

It sounds like you are looking for retime. There you should be resample your timetable to yearly increments and also specify the aggregation function you want to use for the rest of the data.

[CdC]

Thanks. What would be the aggregation function to correctly turn daily returns into retimed annual returns?

[dpb]

Geometric mean -- the annualized return is the geometric average amount of money earned by an investment each year over a given time period.

[CdC]

Thanks. Could you perhaps show the actual command to do it? Thank you.

Answer 1

[dpb]

As per retime first syntax and its example,

ttAnnRet=retime(MCStest,'yearly',@geomean);