How to Manage Your Investment Portfolio with Excel An Excel spreadsheet is just one of several options for keeping tabs on a portfolio. Deciding what information will be included is the first step. Spreadsheets like Excel make it easy to keep track of a wide variety of data, including stock prices. Information about a single financial instrument is displayed in a spreadsheet format. Image by Sabrina Jiang for Investopedia, 2020

The mathematical formula for calculating standard deviation is complex and time-consuming. The same calculation can, thankfully, be performed with a few mouse clicks in Excel. Without a deep understanding of the math, you can get a good sense of a stock or portfolio's risk and volatility.

Methods for Determining Variances in Excel

Manually calculating certain spreadsheet variables, however, can be a time-consuming ordeal. However, if you enter a formula into a cell, it will execute independently. To calculate the amount by which the current price of an asset differs from its entry price, for instance, choose the cell containing the desired result.

To enter an equals symbol (=) into the price cell, click on that cell to highlight it. Then, choose the entering price cell and input a negative sign. You may then see the result by pressing enter. Finding out what's different for each data set is as easy as clicking the cell's lower right corner until a dark plus sign appears (without small arrows) and then dragging the formula to the other relevant cells.

Percentage of Return Calculation Formulas in Excel

Divide the profit from the current price by the initial investment to get the rate of return as a percentage. Monetary investment. To determine the ROI, choose the cell where you wish the number to appear and enter an equal sign. You should then enter an open parenthesis, a minus sign, the entering price, and a close parenthesis in the cell displaying the current price.

Type a forward slash (/) to indicate division, and then re-click on the entering price cell. Pressing the return key will bring up the Percentage. Select the column header, go to Format Cells, and then choose Percentage from the number tab if you want these percentages to show up as such. The formula can be copied from one cell to another using the same way as before by simply dragging it.

Create Profit and Loss Statement Formulas in Excel

The profit or loss can be calculated by multiplying the difference by the total number of shares. A formula must be entered into a particular cell, so select that one. Then, put an equals sign into the cell where the discrepancy lies after setting it (see above). Then, to indicate multiplication, use an asterisk (*) in the box showing the total number of shares. Entering a numerical value into the box and viewing the ensuing gain or loss is possible. Please select the column you want to format as a monetary value by clicking on it, going to the Format Cells menu, and finally choosing the currency. The formula can be pasted into the selected cells by determining the cells around the procedure and clicking and dragging the mouse.

Generating Standard Deviation Formulas in Excel

The standard deviation reflects the extent to which return amounts vary from the statistical average and can therefore be used as a proxy for the possibility of high risk or volatility in a portfolio. The standard deviation of returns, as opposed to periodic returns, will give you a more reliable indicator of future performance. The associated risk also decreases as the standard deviation of a specific item or portfolio lowers.

For the standard deviation of your data, choose the cell in which you'd like to display it. Then, in the Formulas submenu, select Insert Function (this looks like fx). In the Insert Function window, choose "Statistical" from the pull-down menu. After locating it, press STDEV, and then click OK. Select the cells to be used in calculating the standard

Tips and Tricks for Excel Users

When a spreadsheet has been preformatted with the information, you need to see the required computations; entering data and comparing outcomes is a far more streamlined procedure. However, it is time well spent customizing the website layout to your needs and eliminating obscure, irrelevant content. Using the Format button under the Home tab, you can hide a column or rows of data. From the resultant context menu, choose either "Hide" or "Unhide." The use of personal data in calculations is not limited to that visible to the human eye. Create a tidy, hassle-free spreadsheet using this!