Enter the current market price ($) and the n-period moving average value ($) into the Calculator. The calculator will evaluate the Disparity Index. 

Disparity Index Formula

DI = (CMP - nPMAV) / nPMAV * 100

Variables:

  • DI is the Disparity Index (%)
  • CMP is the current market price ($)
  • nPMAV is the n-period moving average value ($)

To calculate Disparity Index, divide the difference between the current market price and the n-period moving average value by the n-period moving average value, then multiply by 100.

How to Calculate Disparity Index?

The following steps outline how to calculate the Disparity Index.


  1. First, determine the current market price ($). 
  2. Next, determine the n-period moving average value ($). 
  3. Next, gather the formula from above = DI = (CMP – nPMAV) / nPMAV * 100.
  4. Finally, calculate the Disparity Index.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

current market price ($) = 45

n-period moving average value ($) = 37.5