2020 vs. 2019 Risk/Return
2020 sure looks different
If you take the daily change for every stock in the S&P 500 and plot the total standard deviation (risk) with the average daily return, you can see the dispersion in return-to-risk and the efficient frontier for each constituent in the index:
To give a sense of how crazy 2020 was, I used the same axis scales and plotted each of those stocks using 2019 stock data:
It’s clear that 2019 fell within a much denser range and that the 2020 market was definitely one to remember!
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I wonder how rare it is to average 1% return per day for an entire calendar year. That has to be fairly historic.