Google Finance’s “Chart Compare” Feature (C=W)

Google Finance offers a powerful yet often overlooked feature: the ability to compare different investments directly on a chart. Represented by the syntax “C=W” in the search bar, this functionality enables users to visually analyze the relative performance of various stocks, ETFs, mutual funds, or even market indices over a specified timeframe.

How it Works

The “C=W” command isn’t a literal button or option within the Google Finance interface. Instead, it’s a way to add comparator tickers to an existing chart. Simply type the first ticker symbol you want to analyze into the search bar and view its chart. Then, add “C=W” followed by the ticker symbols of the investments you wish to compare, separated by commas.

For instance, if you want to compare Apple (AAPL) to Microsoft (MSFT) and Amazon (AMZN), you would first search for AAPL and view its chart. Then, add “C=WMSFT,AMZN” to the search bar. The chart will then display the performance of all three companies normalized to a base value (usually 100) at the start date.

Understanding the Chart

The resulting chart displays the percentage change in price from the start date for each investment. This normalization allows for easy comparison, regardless of the initial price differences between the assets. Instead of comparing the absolute price movements, you’re comparing the relative percentage gain or loss.

Key elements of the comparison chart include:

• Visual Representation: Each investment is represented by a different colored line. A legend identifies which color corresponds to each ticker symbol.
• Timeframe: The timeframe for the comparison can be adjusted using the options above the chart (e.g., 1D, 5D, 1M, 6M, YTD, 1Y, 5Y, MAX).
• Interactive Data: Hovering over the chart displays the exact percentage change for each investment at that specific point in time.

Benefits of Using “C=W”

The “C=W” feature offers several advantages for investors:

• Relative Performance Assessment: Quickly identify which investments are outperforming or underperforming their peers.
• Portfolio Diversification Analysis: Assess the correlation between different assets in your portfolio. Are they moving in tandem, or are they providing diversification benefits?
• Sector Analysis: Compare companies within the same sector to determine the leaders and laggards.
• Benchmarking: Compare the performance of a stock against a market index like the S&P 500 (SPY) to see how it’s faring relative to the overall market.
• Visual Clarity: Provides a clear visual representation of performance differences, making it easier to identify trends and patterns.

Limitations

While powerful, the “C=W” feature also has some limitations:

• No Fundamental Data: The chart only displays price performance. It doesn’t provide any fundamental data like earnings, revenue, or P/E ratios.
• Limited Customization: Customization options are limited compared to dedicated charting platforms.
• Dependence on Google Finance Data: The accuracy of the comparison depends on the accuracy of the data provided by Google Finance.

In conclusion, the “C=W” feature in Google Finance is a valuable tool for investors looking to quickly compare the relative performance of different investments. While it lacks some advanced features found in specialized charting software, its simplicity and accessibility make it a great starting point for investment analysis and decision-making.