Preview

Data Analysis of Apple Inc.

Good Essays
Open Document
Open Document
402 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Data Analysis of Apple Inc.
INTRODUCTION: This project aims to research and understand an individual stock price change, Apple (identified as AAPL in the stock exchange market); by studying the statistics generated by market activity (prices) of the stock along with the price changes in Dow Jones Industrial Average (DJIA) and the Dow Jones U.S. Technology Index (DJUSTC). Assuming that the changes in DJIA and DJUSTC could be estimated by market moving economic indicators (e.g. updates of GDP, Jobless claims, Consumer confidence index, etc.), this analysis will help an individual investor to identify patterns and trends that may suggest the daily price change of the AAPL stock.
DATA DESCRIPTION: The data used in this analysis is a time series data of the daily stock/index price starting from February 1st, 2013 to May 24th, 2013 (accessed 5-27-2013 from www.finance.yahoo.com). The three variables (AAPL, DJI, and DJUSTC) show the percent changes in daily stock/index prices of each of the variables. The percent change was calculated as follows:
% Change in Price= (Today^' s Closing Price-Yesterday^' s Closing Price)/(Yesterday^' s Closing Price)
The independent variable in this analysis is the daily % change in AAPL stock price. The two dependent variables are the daily % changes in DJI and DJUSTC index price.
RESULTS: Below are the results from StatPad
DISCUSSION: The prediction equation is
Change in AAPL stock price = +0.00026 – 1.66237*DJI change + 2.23693*DJUSTC change
The analysis shows that the changes in DJI and DJUSTC together explain a very highly significant proportion of the variation in AAPL. The coefficient of correlation is 0.56 which equals the proportion of variance explained by the regression model. The standard error of estimate is 0.011796385, which indicates the typical size of errors made in predicting AAPL using the regression model.
Figure below shows the actual change in stock price vs. the predicted change in stock price from this analysis. In general, both
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Fin 421 Case
    • 4576 Words
    • 19 Pages

    Fin 421 Case

    The following case provides an analysis of six publicly traded stocks for the purpose of determining which amongst them would be prime candidates for a portfolio in terms of optimal return. Specifically, this paper discusses what options should be written or bought and exercised on the qualifying stocks to maximize profits. In order to accomplish this task the stocks will be measured and compared based on their market performance in terms of returns, betas and volatility, using historical data (recorded stock prices) and regression analysis. Initially the stocks are analyzed using historical returns to derive expected returns and standard deviations, or deviations from the mean or average market return.…

    • 4576 Words
    • 19 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Statistics Chap12, Cases
    • 2342 Words
    • 10 Pages

    Statistics Chap12, Cases

    The estimated regression equation relating each of the individual stocks to the S&P 500 is shown below. The value of [pic]for each equation is also shown.…

    • 2342 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Good Essays

    Papa John's Cost of Capital
    • 956 Words
    • 4 Pages

    Papa John's Cost of Capital

    For the beta of Papa John’s equity (PZZA), we regressed the monthly return on PZZA with the monthly return on the S&P 500 index. Through doing so, we determined that PZZA had a market beta of 0.53. (Please refer to the attached spreadsheet for calculations of beta.)…

    • 956 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Supply and Demand
    • 1063 Words
    • 5 Pages

    Supply and Demand

    Sports teams are switching to a variable-pricing strategy for tickets so that they can get a higher profit on games with record attendance numbers. They feel the need to do so because the marginal costs, such as construction payment and players’ salaries, did not equal to the marginal revenue, since attendance was severely dropping. To pay for the marginal cost, the sports team needed to capitalize on things that they were sure of, like increasing attendances to games between major sporting rivals.…

    • 1063 Words
    • 5 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Equity Valuation Questions
    • 502 Words
    • 4 Pages

    Equity Valuation Questions

    If the stock market has been performing strongly over the past several months, stock prices are more likely to decline than increase over the next several months.…

    • 502 Words
    • 4 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Costco Stock Reflection
    • 877 Words
    • 4 Pages

    Costco Stock Reflection

    Coming into this project, I was not really sure how the stock market worked. When I first invested into stocks, I did not know the philosophy of “buy low and sell high.” I thought the complete opposite, so when I bought shares of particular stocks, I bought them when they were high. So I basically started out my project with a big failure. As I was choosing which stocks to invest in, I looked at their six month history on a chart.…

    • 877 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Event Study of Saic Stock Price
    • 2800 Words
    • 12 Pages

    Event Study of Saic Stock Price

    Over the past decades, the availabilities of computers and statistical software have increased dramatically. As a result of these growing availabilities, it is becoming increasingly feasible to utilize the power of statistical software to study the impact of firm-specific information on a company’s stock return.…

    • 2800 Words
    • 12 Pages
    Powerful Essays
    Read More
  • Good Essays

    Apple stock - dateofbirth - now 2013
    • 676 Words
    • 3 Pages

    Apple stock - dateofbirth - now 2013

    The reason I have included quoted information on how much Apple generates in profits and quoted information by analysts and investors stating APPL stocks decline in rate a few days after the launch of a new IPhone is quite surprising. I alongside many others feel as if AAPL is wanting to keep their stocks declining in the stock market their fore many new investors or even previous investors keep investing.…

    • 676 Words
    • 3 Pages
    Good Essays
    Read More
  • Better Essays

    1929 Stock Market Crash
    • 1419 Words
    • 6 Pages

    1929 Stock Market Crash

    In early 1928 the Dow Jones Average went from a low of 191 early in the year, to a high of 300 in December of 1928 and peaked at 381 in September of 1929. (1929…) It was anticipated that the increases in earnings and dividends would continue. (1929…) The price to earnings ratings rose from 10 to 12 to 20 and higher for the market 's favorite stocks. (1929…) Observers believed that stock market prices in the first 6 months of 1929 were high, while others saw them to be cheap. (1929…) On October 3rd, the Dow Jones Average began to drop, declining through the week of October 14th. (1929…)…

    • 1419 Words
    • 6 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Homework 1
    • 790 Words
    • 3 Pages

    Homework 1

    d What percentage of the variation in Ford’s return is explained by market variation? What percentage is unexplained by market variation?…

    • 790 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Analysis Of The Great Recession
    • 1496 Words
    • 6 Pages

    Analysis Of The Great Recession

    The stock market is often seen as a great predictor of future economic activity. Stock prices reflect the aggregated feelings of each investor who are generally forward-looking. It is even considered a leading indicator by The Conference Board Leading Economic…

    • 1496 Words
    • 6 Pages
    Good Essays
    Read More
  • Powerful Essays

    Tesla Company Analysis
    • 2632 Words
    • 8 Pages

    Tesla Company Analysis

    As a new investor and with the current state of the United States economy, my investment objectives will be centered around a significant level of capital appreciation, as well as marketability, liquidity, and a substantial level of safety. As a college student, I will be looking to analyze and invest in stocks that I will be able to hold for many years and that also provide growth. I will reinvest dividends that I earn back into my portfolio to purchase additional securities that will add to the growth and diversification of my portfolio. Day- to- day fluctuations in price will not affect my opinion of any specific securities, but if a stock shows constant decline over a long period of time, I will be forced to reallocate my assets into different, superior performing securities. With the emergence of new technologies, many securities will lose value and many securities will gain value. Tesla Motors has gained as extraordinary amount of value over the last two years, from a gross profit in 2011 of only $61,595 to a gross profit in 2013 of $426,262, because of newer technologies and changed cultural values due to the excessive decline of our environment.…

    • 2632 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Good Essays

    Investment Test Questions
    • 3071 Words
    • 13 Pages

    Investment Test Questions

    1. The largest one-day percentage decline in the Dow-Jones Industrial Average during the period 1926-2006 occurred on:…

    • 3071 Words
    • 13 Pages
    Good Essays
    Read More
  • Powerful Essays

    Mcdonalds Stock Valuation
    • 4191 Words
    • 17 Pages

    Mcdonalds Stock Valuation

    To begin the economic analysis of McDonalds, we must first look at the company beta. McDonalds has a beta of .34 meaning it is not as volatile when compared to the market and can be categorized as a low risk stock. To determine that financial impact of changes in economic conditions to the performance McDonalds, three economic indicators must be evaluated. The leading economic index (LEI), coincident economic index (CEI), and lagging economic index (LAG), are constructed to summarize and reveal common turning point patterns in economic data in a clearer and more convincing manner than any individual component.…

    • 4191 Words
    • 17 Pages
    Powerful Essays
    Read More
  • Good Essays

    The Determinants of Consumer Price Index in Indonesia
    • 5887 Words
    • 24 Pages

    The Determinants of Consumer Price Index in Indonesia

    The most well known and widely quoted economic indicator is the CPI (Consumer Price Index). It represents an estimation of the change in prices of consumer goods and services. Generally, it represents a measurement of our expenses on goods and services we use to meet our day-to-day needs. Severe problems to the overall economy can be caused if the prices of consumer goods and services are abruptly changed. This paper attempts to examine the factors that influence the Consumer Price Index. We observe four variables, namely, money supply, gross domestic product, interest rate, and share price. By utilizing quarterly data from 1996 to 2008, this study applies multiple regressions method to find the best model and factors which can explain Consumer Price Index. The result indicates gross domestic product, interest rate, and stock price significant effect to consumer price index, whereas money supply does not have significant effect. This study also finds that the highest Adjusted R2 as goodness criteria of the model is derived when we include all the factors in the model. Hence, we can conclude that those factors have either strong or weak contribution to consumer price index.…

    • 5887 Words
    • 24 Pages
    Good Essays
    Read More

Related Topics