# Convert returns into an index? [closed]

What's the right way to take a series of returns and convert it into a continuous index? Let's say I want to show the performance of a strategy starting from 1, and adding on returns so that I get an equity curve, should I be using cumsum(1 + returns) or cumprod(1 + returns)?

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 I voted for a close, since this kind of question apprears to be too simple. – Owe Jessen Mar 27 '11 at 18:53 I agree... voting to close – Joshua Chance Mar 27 '11 at 19:20 I'm not sure what you mean by a "continuous index"; surely you want "cumulative returns". Dollar P&L is added whereas compounded interest is multiplied. You have the latter. Now I'm going to close this for being too basic. – chrisaycock♦ Mar 27 '11 at 19:30

## closed as off topic by Owe Jessen, Joshua Chance, chrisaycock♦Mar 27 '11 at 19:30

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