Apply4

Which of your stock beat the market in 2022?

# Load packages
library(tidyverse)
library(tidyquant)

1 Import stock prices of your choice

# Choose Stocks
symbols <- c("AMZ","TSLA","AAPL","CMG","NKE")

prices <- tq_get(x=    symbols,
                 get ="stock.prices",
                 from = "2012-01-01",
                 to = "2017-01-01")

## 2 Convert prices to returns by ***quarterly***

``` r
asset_returns_tbl <- prices %>%

    group_by(symbol) %>%
    tq_transmute(select=   adjusted,
     mutate_fun=  periodReturn,
     period= "quarterly",
     type= "log") %>%
   
    ungroup() %>%
    set_names(c("asset", "date", "returns"))

3 Make plot

asset_returns_tbl %>%
    ggplot(aes(x = returns)) +
    geom_density(aes(color=asset), show.legend = FALSE, alpha = 1) +
    geom_histogram(aes(fill = asset), show.legend = FALSE, alpha = 0.3, bindwith = 0.01) +
    facet_wrap(~asset, ncol = 1)

#labeling
labs(title= "Distribution of Quarterly Returns,2012-2016", 
     y     = "Frequency" , 
     x     = "Rate of Returns" ,
     captions = "A typically return is higher for __ than for _." )

## $y
## [1] "Frequency"
## 
## $x
## [1] "Rate of Returns"
## 
## $captions
## [1] "A typically return is higher for __ than for _."
## 
## $title
## [1] "Distribution of Quarterly Returns,2012-2016"
## 
## attr(,"class")
## [1] "labels"

4 Interpret the plot

-Apple (AAPL) seems to be the safest option because there isnt much risk as there arent expected high returns. -Amazon (AMZ) and Nike (NKE) are a bit riskier but still not heavy returns. -Chipotle (CMG) has almost 0.4% of quarterly returns… higher risk but alot more reward. -Tesla (TSLA) is the most risky, with huge payouts in returns at one quarter they did around 1.1%. Choose Apple for safety, and Tesla for high risk and reward, the rest find themselves in the middle

5 Change the global chunck options

Hide the code, messages, and warnings