World’s champions, as of August 2009, January 2009 in brackets:
Nasdaq: 866% [1222%]
Shenzhen SE: 506% [232%]
Shanghai SE: 273% [110%]
Korea Exchange: 260% [209%]
Istanbul: 198% [161%]
Turnover velocity is:
the ratio between the turnover of domestic shares and their market capitalization. The value is annualized by multiplying the monthly moving average by 12, according to the following formula :
Monthly Domestic Share Turnover
Month-end Domestic Market Capitalization
Only domestic shares are used in order to be consistent.
Turnover velocity is calculated in 2 steps :
- step 1 : we first calculate for each month the annualized ratio between the domestic share turnover and the domestic market capitalization, multiplied by 12 ;
- step 2 : then, we add together, using a moving average methodology, the percentage ratios obtained in step 1, divided by 12.