What is drift rate in stock price?

Daily Drift is a term used to describe the average movement of stock prices over time. This metric provides insight into the inherent tendency of stock prices to fluctuate, offering valuable information to investors.

To calculate Daily Drift, one must analyze the mean of daily returns over a specified period. This period can vary depending on the investor's needs and goals, but it typically involves examining a period of several weeks, months, or even years.

By examining the Daily Drift, investors can gain a better understanding of the overall trend of a stock's price movement. This can help them make more informed decisions about when to buy or sell a particular stock.

Daily Drift can also be used to compare the performance of different stocks within the same industry or sector. This can provide valuable insights into which stocks are outperforming their peers and which may be underperforming.

In addition to analyzing stock prices, Daily Drift can also be applied to other financial instruments such as cryptocurrencies. By examining the Daily Drift of a cryptocurrency, investors can gain a better understanding of its price volatility and potential for growth.