fix years calculation in cagr() and removing the "periods" parameter #74
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CAGR is an annualized rate, so the cagr() function should figure out how many years go by between the first and last of the returns that are input to the function. To do this, we just figure out the number of days elapsed and divide by 365.
The current code takes a periods parameter and does some funny math that produces wrong results because the frequency (daily, weekly, monthly) of the returns is irrelevant for this function.
This mistake is the cause of multiple open issues:
#26 (comment)
#30
#44
This request is to use a constant 365 to calculate the number of years in cagr and remove the periods parameter only from this function.
Description by Korbit AI
What change is being made?
Remove the "periods" parameter from the
cagr()function and correct the years calculation logic by directly dividing the days by 365.Why are these changes being made?
The "periods" parameter was unnecessary and removing it simplifies the function; this modification ensures a consistent annualization period. Additionally, correcting the years calculation to always use 365 days mitigates potential calculation errors and aligns with common financial analysis practice.