What is turnover? Distinguish one-sided and two-sided measures

Turnover compares traded value over an interval with a defined asset-value denominator. A number is incomplete without knowing which trades enter the numerator and which asset value supplies the denominator.

It is different from an order count or a change in portfolio membership. Identical counts can have different quantities and prices. Skipped orders do not contribute filled traded value.

In this fictional teaching example, sales of 200,000 yen and purchases of 200,000 fill against a reference asset value of 1,000,000. Adding both sides gives (200,000+200,000)÷1,000,000 = 40%. These are not real transactions.

A convention that divides the two-sided total by two gives 20%. Other conventions use the smaller of purchases and sales. The phrase “one-sided” does not establish the formula; read the actual definition.

Opening, closing and average asset values can produce different ratios. Summing daily ratios with daily denominators is not generally identical to dividing total traded value by an interval-average asset value.

When deposits or withdrawals change account size, identify trading related to those flows separately from portfolio replacement. Research comparisons need consistent numerator and denominator rules.

A sum of daily turnover ratios uses each day’s denominator. A monthly value is not directly comparable with an annual value. Show the interval and number of observations.

If annualizing, state the method and sampling frequency. Calendar days, observations and trading sessions differ. Multiplying irregular observations by 252 does not automatically create comparable annual turnover.

With a simple proportional fee model, traded value connects to fee calculations. Minimum charges, price differences and market impact prevent turnover alone from establishing total costs.

KabuForge’s public result charts describe two-sided gross turnover. Do not call it one-sided or confuse it with quantile membership changes. Avoid deducting fees again when they are already included in reported values. Related explanations: transaction costs, quantile analysis, factors.

Workflow and display source: public GUI research course (reviewed October 6, 2026). Fictional examples illustrate calculations and are not course results.

Public course results are research-only; historical information availability is unverified. Explaining a general definition does not establish full software support. No securities or trades are recommended. Read the disclaimer.

Explore the backtesting learning path

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• What is survivorship bias? The problem with today’s stock list
• Historical Paper Replay and Forward Testing: Different Evidence