Charts are a quick and easy way to compare the growth and volatility of multiple assets over time. However, if the assets are
in very different scales, the changes in the smaller ones will be dwarfed by the larger ones, rendering the chart unusable.
For example, Bitcoin's price is in the thousands of dollars while Ripple's price is in the tens of cents.
The chart below shows the 6 month data for these two assets. As you can
see, the graph for Ripple turns into a mere straight line near zero and it is impossible to gain any insights from it.

To solve this problem, all our charts come equipped with the "scaled" option. To scale (or normalize) a variable, we divide all of its values
by its first value. For example, in the chart above, the value of Bitcoin in the first period (12 Aug '17) is $3653.6 and that of Ripple is $0.18.
So we divide all values of Bitcoin by 3653.6, and all values of Ripple by 0.18. The resulting chart would look like this:

This makes comparing the graphs super easy. After scaling, the value of a variable at each time shows by how many times the asset's price
has increased (or decreased)
compared to the first period. For example, in the chart above, the scaled value of Bitcoin and Ripple in the last period (7 Feb '18) are
2.14 and 4.32, respectively, meaning that their values have increased 2.14-fold and 4.32-fold since the first period of the chart (12 Aug '17).

Have questions? Don't hesisate to ask us!

Have questions? Don't hesisate to ask us!