Definitions
In plain terms
A price moving from 80 to 84 has a price relative of 1.05 and a simple price return of 5%.
Technical
The price relative is dimensionless and equals one plus the simple price return when both prices share instrument, currency, adjustment, and unit bases.
Scope
It is invalid when the starting price is zero and does not include distributions unless embedded in the selected value series.
Formula
PR = P1 / P0PR=P_1/P_0| Symbol | Meaning | Unit |
|---|---|---|
P0 | starting comparable price | currency |
P1 | ending comparable price | currency |
Output unit: ratio
Examples
- A governed calculation records price relative with its exact basis, effective time, source, and units.
Common misconceptions
- Price Relative does not have one universal treatment without the applicable methodology, event terms, and data context.
Concept relationships
Related
Required by
Where this concept is used
- ImportantBackward Split AdjustmentD02-F01-A01
- ImportantForward Split Adjustment: carry later observations onto an earlier share basisD02-F01-A02
- ImportantCRSP Cumulative Price Adjustment: Respect the Vendor Basis, Sign, and GapsD02-F01-A04
- ImportantRights-Issue TERP AdjustmentD02-F02-A01
- ImportantPrice-Return IndexD03-F04-A01
Evidence and governance
- Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract
Supports: preferred label, short definition, technical definition, formula
Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.
- Reviewed by
- fintech-builder-owner-approved
- Last reviewed
- 2026-07-27
- Next review
- 2027-07-27
- Record status
- published