1 Import stock prices of your choice
2 Convert prices to returns by
quarterly
## # A tibble: 326 × 3
## asset date returns
## <chr> <date> <dbl>
## 1 GOOG 2010-03-31 -0.100
## 2 GOOG 2010-06-30 -0.243
## 3 GOOG 2010-09-30 0.167
## 4 GOOG 2010-12-31 0.122
## 5 GOOG 2011-03-31 -0.0122
## 6 GOOG 2011-06-30 -0.147
## 7 GOOG 2011-09-30 0.0170
## 8 GOOG 2011-12-30 0.226
## 9 GOOG 2012-03-30 -0.00724
## 10 GOOG 2012-06-29 -0.100
## # ℹ 316 more rows
3 Make plot

4 Interpret the plot
Market Benchmark (^GSPC): Typical
Return: The distribution is concentrated around a median
quarterly return of roughly +6%, showing relatively steady and
consistent growth. Maximum Return: The S&P
500 reached a maximum quarterly return of around +20% during a strong
quarter. Minimum Return: It experienced a
quarterly loss of around -20% during a severe market downturn. The
S&P 500 has the narrowest distribution, meaning its quarterly
returns were more consistent than those of the individual stocks.
DLR: Typical Return: DLR
has a more modest median quarterly return of around +8%.
Maximum Return: Its maximum quarterly return
was around +20% during its strongest periods. Minimum
Return: Its quarterly return fell by around -20% to -28%
during its worst periods. DLR has a narrower distribution compared with
the large technology stocks, showing less variation in its quarterly
returns.
GOOG: Typical Return:
GOOG has a median quarterly return that range from 2% to 20%, so medium
10%. Maximum Return: Its maximum quarterly
return was roughly +25% to +30%. Minimum
Return: Its quarterly return fell by around -24% during
its worst periods. GOOG has a more concentrated distribution than NVDA
and META, meaning its quarterly returns varied less than those two
stocks.
META: Typical Return: The
distribution is centered around a median quarterly return of
approximately +6%. Maximum Return: META
reached a maximum quarterly return of nearly +60% during some of its
strongest quarters. Minimum Return: It also
experienced quarterly losses of up to around -42% during major declines.
META has a relatively wide distribution, showing that its quarterly
returns varied significantly during the period.
NVDA: Typical Return: The
distribution is centered around a positive median quarterly return of
about +7%. Maximum Return: NVDA reached a
maximum quarterly return of more than +60% in some of its strongest
quarters, showing a very high potential for growth. Minimum
Return: It also experienced quarterly loss of around -70%
during its worst period.NVDA has the widest distribution and the highest
variation in quarterly returns. It had the potential for very large
gains, but also experienced some of the largest quarterly losses.
Overall: The width of each distribution shows how
much the quarterly returns varied during the period. The typical return
shows where quarterly returns were most commonly concentrated, while the
maximum and minimum returns show the largest historical quarterly gain
and loss. NVDA had the widest range of returns, with the potential for
very large gains but also large losses. In comparison, the S&P 500
and DLR had more concentrated distributions, meaning their quarterly
returns were generally less variable.
5 Change the global chunck options
Hide the code, messages, and warnings