1 Import stock prices of your choice

2 Convert prices to returns by quarterly

## # A tibble: 60 × 3
##    asset date       returns
##    <chr> <date>       <dbl>
##  1 MSFT  2012-03-30  0.213 
##  2 MSFT  2012-06-29 -0.0455
##  3 MSFT  2012-09-28 -0.0207
##  4 MSFT  2012-12-31 -0.0951
##  5 MSFT  2013-03-28  0.0800
##  6 MSFT  2013-06-28  0.216 
##  7 MSFT  2013-09-30 -0.0297
##  8 MSFT  2013-12-31  0.133 
##  9 MSFT  2014-03-31  0.104 
## 10 MSFT  2014-06-30  0.0245
## # ℹ 50 more rows

3 Make plot

4 Interpret the plot

As the plot shows data on quarterly returns only, I can only interpret the plot based on quarterly and not monthly.

NVDA has the widest distribution out of all these stocks, which would indicate a higher volatility, but also potential higher returns in some quarters. GOOGL and MSFT have narrower distributions which would suggest more stability in their returns. As we see in NVDA’s plot, its peak is indeed higher than the peaks of the other stocks. The peak of NVDA’s curve being more to the right than the other curves and peaks also indicates that NVDA typically has higher returns. I would expect NVDA to make more money and have larger quarterly returns than MSFT and GOOGL.

The largest possible gain expected is 0.55 and the largest loss expected is -0.15. The overall range of returns expected is -0.5 to (~)0.12 (if the ones with a 1 frequency are not taken into account). GOOGL’s range is -0.1 to 0.1, which is pretty narrow, and this suggests that this stock has a lower volatility and less risky. MSFT’s range is 0 to 0.12, which is moderate, and it suggests that it has a moderate risk. NVDA’s range is -0.5 to 0.1, and it also has a lot of frequency of 1 all over the rate of returns axis, which suggests that it might be the most risky and volatile stock. Overall, the stock with the higher and frequent returns are MSFT and NVDA, but MSFT also has more positive returns.

We should expect a little bit under 0 for a return for GOOGL, between 0 and 0.12 for MSFT and -0.5 to 1 for NVDA.

Based on this, I would expect NVDA to make more money and have larger quarterly returns than MSFT and GOOGL. I also expect MSFT to have more often positive returns, but NVDA has a larger number of higher rate of returns.

5 Change the global chunck options

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