I received the following question, which is interesting for everybody I believe.
Originally Posted by Not disclosed
This is a very good question. The Average TEV and the TEV ext that are shown are normalized values because each ETF has different levels of TEV/Volume patterns. Yes, you are right: the normalized Average TEV is between 0% and 100%.
The normalization process of TEV ext is however independent of the normalized Average TEV and is calculated as follows:
Normalized TEV Ext = (Not normalized TEV - Not normalized Aver TEV ) divided by the TEV range for the past 100 days.
The TEV range is the 100Days Max TEV - 100Days Min TEV.
As you can see, the normalized average TEV is not used to calculate the Normalized TEV Ext.
Both calculations are independent.
Pascal