It would be good to know for example, the maximum possible return one could have earned on say Apple or Google or an S&P500 exchange traded fund, if one managed to time the market perfectly and expose risk to the fund only on positive return market days, and assume 0% returns for all days in the red.
That measure could be useful. It tells something volatility may not be able to tell, nor expected rate of return. Rather it tells for that year, how much potential there is for gains if you are skilled at timing the market.
Such that
rate of return under perfect lucky timing the market (only exposed on green days)
X
Rate of return under perfect unlucky timing the market (only exposed on bad days)
= Annual return
That measure could be useful. It tells something volatility may not be able to tell, nor expected rate of return. Rather it tells for that year, how much potential there is for gains if you are skilled at timing the market.
Such that
rate of return under perfect lucky timing the market (only exposed on green days)
X
Rate of return under perfect unlucky timing the market (only exposed on bad days)
= Annual return
Why don't stocks also report "Annual Returns when throwing out the bad days?