Portfolioprobe's investment performance measurement vs calculation
Measurement as a call to action.
I said "measurement". My dialogist heard "calculation" but wanted "measurement". We went dizzy in the chase.
A calculation is what computers do.
A measurement is an assessment. It is a comparison with an ulterior motive.
I'm not going to weigh myself unless there is the possibility of a change in behavior. If there is no value of my weight that is going to affect the way that I act, then weighing is pointless -- the scale does the calculation but there is not actually a measurement.
Look at these on 4 schemes:
a performance statistic relative to a benchmark
a peer group
a performance statistic relative to no trading
random portfolios