\[DE = \bigg(\frac{RG}{RG + PG}\bigg) - \bigg(\frac{RL}{RL + PL}\bigg)\]</span></p>
<p>The DE varies between -1 and 1. Positive DE values show the presence of disposition effect irrational behaviors, while negative values show the presence of opposite disposition effect behaviors. A value of zero show that no disposition effect exists.</p>
<p>You almost never want to compute the disposition effect directly via the <code>disposition_effect</code> function, but you will mostly rely on the quicker and easier <