Rolling Returns

What are 'Rolling Returns'

Rolling returns is the annualized average return for a period ending with the listed year. Rolling returns are useful for examining the behavior of returns for holding periods similar to those actually experienced by investors.

Also known as 'rolling period returns' or 'rolling time periods'.

BREAKING DOWN 'Rolling Returns'

For example, the five-year rolling return for 1995 covers Jan 1, 1991, through Dec 31, 1995. The five-year rolling return for 1996 is the average annual return for 1992 through 1996, etc.

RELATED TERMS
  1. Roll Back

    In options trading, exiting one position and entering a new one ...
  2. Options Roll Up

    The move from one option position to another that has a higher ...
  3. Roll Yield

    The amount of return generated in a backwardated futures market ...
  4. Tax Roll

    A breakdown of all property within a given jurisdiction, such ...
  5. Roll Down

    The replacement of an option with a new option that has a lower ...
  6. Target Return

    A pricing model that prices a business based on what an investor ...
Related Articles
  1. Professionals

    Introduction

    FINRA/NASAA Series 66: Section 2 Measuring Portfolio Returns. This section discusses different return measures: return on investment, holding period, annualized, risk free and total returns.
  2. Retirement

    401(k) Rollovers: Which Option Makes You the Most?

    Know the choices that net you the most on a 401(k) rollover – including big tax benefits (capital gains, not income tax) when company stock is involved.
  3. Investing Basics

    What Long-Term Investing Should Mean to You

    Long-term investing is relative depending on many things, but really, how long is it? We take a look back to try and find the answer.
  4. Professionals

    Measuring Portfolio Returns

    NASAA Series 65: Section 16 Measuring Portfolio Returns. In this section different types of risk measures discussed and some sample questions.
  5. Fundamental Analysis

    How To Calculate Your Investment Return

    How much are your investments actually returning? Find out why the method of calculation matters.
  6. Fundamental Analysis

    Explaining Expected Return

    The expected return is a tool used to determine whether or not an investment has a positive or negative average net outcome.
  7. Professionals

    Rates of Return

    FINRA/NASAA Series 66 Section 1 - Rates of Return. In this section internal rate of return (IRR), real return, expected return and risk-adjusted return.
  8. Budgeting

    Digging Out Of Debt In 8 Steps

    The only way to get out of debt is to roll up your sleeves and start paying it off - one dollar at a time.
  9. Budgeting

    7. Roll It Over

    The recession won't last forever, but in the meantime take advantage of these lazy ways to stay on track financially, and develop some pretty good money management habits for the future!
  10. Retirement

    Rolling Over Your 401(k) in Times Of Volatility

    Learn the risks that come with rolling over a 401(k) in times of market volatility, and discover strategies that you can use to cope with these risks.
RELATED FAQS
  1. I want to roll over a portion of my retirement plan with my employer and I have been ...

    This is based on the rules that an individual can roll over a portion of his or her retirement plan balance, rather than ... Read Answer >>
  2. What is the difference between a company's annual return and its annualized return?

    Understand the importance of calculating a company's annual return and its annualized return, and learn the differences between ... Read Answer >>
  3. What's the difference between absolute and relative return?

    Knowing whether a fund manager or broker is doing a good job can be a challenge for some investors. It's difficult to define ... Read Answer >>
  4. What annual return could an investor expect on average from the drug sector?

    Learn which annual average returns the drugs manufacturing sector and its industries can generate for investors based on ... Read Answer >>
  5. What does it mean to roll a derivative contract?

    Find out more about derivative securities, how to roll forward a derivative contract and what it means when a derivative ... Read Answer >>
  6. Can I borrow from an IRA without penalty?

    Yes. A 60-day rollover rule applies to all types of IRAs. This 60-day rollover rule allows you to withdraw assets from your ... Read Answer >>
Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  4. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  5. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  6. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
Trading Center