To see how a stock performed against its sector and the broader market on a particular day, compare their percentage returns over the same close-to-close interval. Subtract the sector proxy’s return from the stock’s return, then repeat with a relevant broad-market index. Report each result in percentage points and name the exact comparators.
Calculate the stock’s daily return
Use the closing value on trading day t and the previous trading day’s close for each series:
Daily percentage return = (close on day t ÷ close on prior trading day − 1) × 100
For example, a move from $50 to $51 is a 2% return, while a $2 move from $200 to $202 is a 1% return. Comparing raw dollar changes would obscure that difference.
Recommended Free Tools
#1 Best Overall
Choose a sector proxy and a broad-market index
“The sector” and “the market” do not each refer to one universal series. An index is an unmanaged group of securities whose overall performance serves as a benchmark, as Vanguard explains. Select measures that fit the company and the question, then identify them by name.
- Sector comparison: Choose a sector index or ETF whose mandate and holdings reasonably match the company.
- Market comparison: Choose a broad index relevant to the company’s listing and market exposure.
An ETF is a traded fund, not an index: its holdings and market price can differ from the index it tracks, and its market price can differ from its net asset value (NAV). Investor.gov describes these ETF features and where fund holdings and performance information may be found in its ETF investor bulletin. If using an ETF as a proxy, say so; consult the fund’s materials when its benchmark or fund-specific data matters. Also note whether the stock itself is a constituent: its price movement then contributes to the comparator, so the comparison is not fully independent of the company.
Rank #2
- Comes with secure packaging
- Easy to read text
- It can be a gift option
Subtract returns to get the daily spread
Calculate the stock’s return and each comparator’s return for the same interval. Then subtract:
- Sector-relative spread (percentage points) = stock return − sector proxy return
- Market-relative spread (percentage points) = stock return − broad-index return
Suppose, for illustration, a stock returned 1.8%, its sector proxy returned 0.6%, and a broad index returned 0.4%. The stock outperformed the sector by 1.2 percentage points and the index by 1.4 percentage points for that interval. These hypothetical differences describe relative moves; they are not portfolio returns and do not explain what caused the stock’s move.
Free tools Windows power users keep installed
One-click scans. No signup required.
Use “percentage points” for the subtraction. In this example, 1.8% minus 0.6% is 1.2 percentage points—not a 1.2% return. “Outperformed by 1.2 percentage points that day” is a concise description of the selected period and benchmark, not a claim about skill or future performance.
Keep the dates and return basis aligned
A valid daily comparison uses observations covering the same interval and a compatible basis. Record the trading date, exchange, currency, and whether each value is a closing price, official index close, ETF market close, or NAV. A live stock quote paired with an already-completed index close does not measure the same interval. Holidays, different market hours, and different close times can also create mismatches; disclose them rather than silently pairing unlike observations.
Rank #4
State whether the figures are price returns or total returns. A price index measures price movement; a total-return index includes dividend income, generally assuming reinvestment. The S&P 500 price index and Total Return Index illustrate the distinction: the latter includes reinvested dividends, as described in this SEC-hosted filing on S&P 500 index calculations. Comparing a stock’s price return with an index’s total return—or the reverse—mixes measures and can be especially misleading around ex-dividend dates.
Use relative wealth for multi-day comparisons
The percentage-point spread answers how far the returns differed over one interval. For a one-interval relative-wealth comparison, use returns as decimals:
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
Best Value
Relative return = (1 + stock return) ÷ (1 + benchmark return) − 1
For several days, compound each series’ daily returns, or compound the daily relative-return ratios. Do not add daily percentage-point spreads and present their sum as compounded relative performance. Keep the benchmark, dates, and return basis consistent throughout the period. For broader portfolio evaluation, annualized or risk-adjusted measures can add context; Vanguard’s performance guidance recommends considering performance in relation to relevant benchmarks and notes the role of those measures.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Do not confuse a daily spread with tracking error
A stock’s return minus a benchmark’s return on one day is a daily active-return spread. It is not tracking error. Tracking error describes differences between portfolio returns and benchmark returns across observations; SEBI’s investor explanation treats it as a measure of that variation, not the name for a single subtraction.
Finally, a one-day gap says only how the chosen stock and comparators moved over the selected interval. It does not identify a catalyst, establish causation, or predict persistence. Product objectives can also be time-specific: leveraged and inverse funds target daily returns, so their daily objective should not be generalized to a longer holding period without considering compounding and product terms, as ProShares notes in its performance FAQ.
Windows Errors? Fix Them Before They Spread
Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallCrashes, No Sound, or Screen Glitches?
Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteQuick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
