Please advise how can i normalize stock prices.
Recently, I've been using such formulas:
Log prices = Ln(Close(t))
Is there any other ways?
This answer can certainly be improved with more information: like which instruments, what time scale etc.
If you can assume one instrument to be the 'base' instrument then the ratio of the prices is a good measure with both time series beginning at the same time. This is similar to calculating relative return. I have used this when backtesting a pairs trading system.
More information might help me improve the answer.
Happy to help.
Here are some more :
Some more information about the problem would help.