Question
Form a portfolio (2 stocks or more) or simply use one of the market indices (SPY, QQQ etc) for the following questions. [ Daily returns
Form a portfolio (2 stocks or more) or simply use one of the market indices (SPY, QQQ etc) for the following questions.
[Daily returns] Calculate the daily returns using pct_change.
[Daily returns] Is the daily return series normally distributed? Carry out a test and interpret its p-value.
[Monthly returns] Convert the daily frequency of the return series to monthly. Is the monthly return series normally distributed? Carry out a test and interpret its p-value.
[Monthly returns & Recession] Split the monthly return series into 2 groups by USREC. Any notable difference in the standard deviation in these two periods?
[Standard deviation of daily returns & Recession] Plot the standard deviation (.std instead of .mean ) of the daily returns over every 50 days, i.e. rolling(50). Add the recession periods in the figure (your series might have different starting point). Is the standard deviation higher before and during the recession?
[Daily prices] Calculate the SMA50 and SMA200 using the daily price series.
[Daily prices] Plot SMA50, SMA200 and the index price (portfolio value) in the same figure.
[Daily prices] What happen to the stock price when SMA50 crosses SMA200 from below?
[Daily prices] What happen to the stock price when SMA50 crosses SMA200 from above?
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