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st: Cumulative Return Calculation for Recurring Periods


From   Edward Crawley <[email protected]>
To   [email protected]
Subject   st: Cumulative Return Calculation for Recurring Periods
Date   Wed, 19 Jun 2013 19:27:45 +0100

Dear listers,

I am trying to calculate cumulative returns for recurring periods in
my panel dataset;

date company return
2001m1 1  .
2001m2 1 .14425
2001m3 1 -.215709
2001m4 1 -.160343
2001m5 1 .390866
2001m6 1 -.014815
2001m1 2  .
2001m2 2 .315081
2001m3 2 -.392042
2001m4 2 -.127833
2001m5 2 .646627
2001m6 2 .133531
2001m1 3  .
2001m2 3 .184734
2001m3 3 -.036814
2001m4 3 -.29605
2001m5 3 .457318
2001m6 3 -.060292
.
.
.
.

For instance, for each firm, I need to calculate cumulative returns
for recurring 3 periods ( e.g. from 2001m1 to 2001m4 and from 2001m2
to 2001m5 and ... etc.).

I used the following code, but it didn't give the desired result;

bys company (date): g c=sum(ln(return+1))
replace c=exp(c)-1
rename c cumreturn

I appreciate any help,

Best regards,

Edward
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