CAGR

I get an e-mail that asks about calculating the Compound Annual Growth Rate and how it varies over time. So I whip out a spreadsheet and play, downloading 10 years worth of monthly stock prices then calculating the CAGR (or annualized return) over a moving 3-year window. For example: There's a description here. The interesting thing is to notice the correlation between the CAGR and the Volatility. For KO (that's Coca-Cola, eh?), the correlation is -71% Must have something to do with cocaine.