Statistics Project
Statistics Project | September 26
2011
| The project statistically studies and compares the daily closing price movement of two investment options – real estate and gold represented by DLF stock and SBI Gold ETF respectively – over the past 3 years. | Comparative study of DLF Stock and Gold ETF price movement |
Contents Stage 1 3 Overview 3 Problem Statement 3 Inferences 5 Stage 2 6 Hypothesis Testing 6 Stage 3 7 Linear Regression Analysis 7 Manual Calculations 7 Regression Analysis: DLF Closing versus Gold Closing using Minitab 7 Appendix A 10 Appendix B 23 Appendix C 38 Appendix D 53
Stage 1
Overview
In this stage, the daily closing values of DLF stock price and SBI Gold ETF are analyzed. These two …show more content…
One measure of return is the % appreciation in value of the investment over a period of time. In case of our subjects, the % appreciation/depreciation of daily closing prices is an effective measure of return.
The frequency distribution plot of the % change of closing price is a visual representation of the volatility – which is an important measure of …show more content…
A box plot of the % change in daily closing prices is another visual representation of the risk (volatility). The graph below is the box plot of the % change in daily closing price of both DLF stock and Gold ETF
Inferences 1. From the frequency plot, it’s clear that the % change in daily closing price of DLF stock is more dispersed while that of Gold ETF is concentrated around the centre. This means that the volatility (risk) is more in case of DLF stock (real estate investment). 2. From the descriptive statistics table, DLF has a negative (-0.08) mean for %change of daily closing price, which means that, on an average the stock depreciated over the 3 year period per day. While the same measure of Gold ETF is positive (0.12) – which means the ETF appreciated by 0.12% per day on an average over the 3 year period. 3. From the descriptive statistics table, the standard deviation of DLF stock closing price change is almost 3 times that of the Gold ETF, which means it’s a riskier
2011
| The project statistically studies and compares the daily closing price movement of two investment options – real estate and gold represented by DLF stock and SBI Gold ETF respectively – over the past 3 years. | Comparative study of DLF Stock and Gold ETF price movement |
Contents Stage 1 3 Overview 3 Problem Statement 3 Inferences 5 Stage 2 6 Hypothesis Testing 6 Stage 3 7 Linear Regression Analysis 7 Manual Calculations 7 Regression Analysis: DLF Closing versus Gold Closing using Minitab 7 Appendix A 10 Appendix B 23 Appendix C 38 Appendix D 53
Stage 1
Overview
In this stage, the daily closing values of DLF stock price and SBI Gold ETF are analyzed. These two …show more content…
One measure of return is the % appreciation in value of the investment over a period of time. In case of our subjects, the % appreciation/depreciation of daily closing prices is an effective measure of return.
The frequency distribution plot of the % change of closing price is a visual representation of the volatility – which is an important measure of …show more content…
A box plot of the % change in daily closing prices is another visual representation of the risk (volatility). The graph below is the box plot of the % change in daily closing price of both DLF stock and Gold ETF
Inferences 1. From the frequency plot, it’s clear that the % change in daily closing price of DLF stock is more dispersed while that of Gold ETF is concentrated around the centre. This means that the volatility (risk) is more in case of DLF stock (real estate investment). 2. From the descriptive statistics table, DLF has a negative (-0.08) mean for %change of daily closing price, which means that, on an average the stock depreciated over the 3 year period per day. While the same measure of Gold ETF is positive (0.12) – which means the ETF appreciated by 0.12% per day on an average over the 3 year period. 3. From the descriptive statistics table, the standard deviation of DLF stock closing price change is almost 3 times that of the Gold ETF, which means it’s a riskier