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```
public LNRet(Bars bars, DataSeries ds, int period)
public LNRet(Bars bars, DataSeries ds, int period, string description)
```

bars | A Bars object |

ds | Data series |

period | Lookback period |

```
logarithm of daily returns.
```

Z(t) := ln(Y(t)) - ln(Y(t - lookback))

or equivalently:

Z(t) := ln(Y(t) / Y(t - lookback))

Logarithmic returns are the "base currency" in quantitative analysis. Unlike arithmetic returns:

- logarithmic returns sum in a correct way: the sum of five logarithmic daily returns is the same as the weekly log return.
- the natural log return is the equivalent of the
*continuously compounded rate of return*for the given time period.

Logarithmic returns are the base of most further calculations:

- CAGR - Compound Annualized Geometric Return
- HV - Historical Volatility
- Variance Ratios

- ROC - absolute returns as percentages
- MomentumPct - relative returns as percentages
- Momentum - Difference of Prices. Depends on absolute price level.