Explanation of Quantities and Features in QPP

This guide is designed to familiarize users with each piece of input and output included in the first six pages of QPP, pages 9 and 10 of QPP, and the Correlation Matrix. The structure of this document follows the structure of QPP itself, marching through the measures and metrics in QPP as they appear in the program, page by page.

NOTE: Quantext is not a registered investment advisor.  No information in this document should be taken as advice to buy or sell any asset.  Any and all information obtained from Quantext is on an "AS IS" basis. Please note that the numbers/tickers used in the QPP screen shots and examples are for illustrative purposes only and are not to be taken in any way as advice.

Within QPP there are several different parts (or sheets as they are called in Excel.) Here is a list of those parts, brief descriptions of what they contain, and how to locate them in the program:

Portfolio Report

This is the main body of QPP. It is organized into pages, stacked vertically. When you first open QPP (the .xls file) you will find yourself in the Portfolio Report. You can use the PGUP and PGDN (page up and down) and scroll buttons to navigate between them. If you scroll down, you will find pages 1-10. These pages are the focus of the bulk of this guide.

All of the user input (except for custom glide path information) goes into this portion of QPP. Most of the output is also within this portion of the planner. If you need to get back to this sheet, click on the tab labeled Portfolio Report at the bottom of the Excel screen.

If you are working with QPP and have a question about a feature on, for example, Page 3, please follow the link to Page 3, below, to find detailed definitions and descriptions.

Correlations Matrix

To get to the Correlations Matrix, hit the Tab labeled Correlations at the bottom of the Excel Sheet. This table reveals the calculated correlations between all portfolio components, and the correlations of the components to the portfolio as a whole. The various colors help to indicate high, mid-range, and low correlations.

This table is useful if you are trying to diversify your portfolio; stocks/funds with low correlations to each other and the portfolio will increase the diversification of the portfolio. The Diversification Metric (DM) is given on Page 3 of the Portfolio Report (and is described on Page 3 of this guide.) Furthermore, we have a pdf about the Diversification Metric.

Custom Glide Path Tool

This tool is found by clicking on the Tab labeled Savings-Income, located at the bottom of the Excel screen. This feature is not included in the free trial version, but is included in all licensed versions of Quantext’s portfolio planners (QPP, QPP40,and QRP.)

The Custom Savings/Draw Feature allows users to model the future of their portfolio even if they intend to diverge from the typically assumed situation of saving a consistent amount (inflation adjusted) until you retire, and then drawing a fixed amount (inflation adjusted) for the rest of your life. This feature allows users to explore possibilities such as saving a consistent amount until, say, age 55, and then NOT drawing for ten years, and then ramping up the draw on their portfolio over the next ten years. Any unique path can be specified on a year by year basis.

We have a user guide for this tool.

Stock Options Tool

This tool allows you to create projections of the effect of options on one euity at a time. You can evaluate long dated options such as employee stock options or options that are closer to expiration.

This tool lives on pages 7 and 8 of the main body of QPP, the Portfolio Report. User Guide