library(data.table)
URL<-"https://raw.githubusercontent.com/WigodskyD/R-Bridge/master/Weekly.csv"
SP500<-fread(URL)
summary(SP500)
## V1 Year Lag1 Lag2
## Min. : 1 Min. :1990 Min. :-18.1950 Min. :-18.1950
## 1st Qu.: 273 1st Qu.:1995 1st Qu.: -1.1540 1st Qu.: -1.1540
## Median : 545 Median :2000 Median : 0.2410 Median : 0.2410
## Mean : 545 Mean :2000 Mean : 0.1506 Mean : 0.1511
## 3rd Qu.: 817 3rd Qu.:2005 3rd Qu.: 1.4050 3rd Qu.: 1.4090
## Max. :1089 Max. :2010 Max. : 12.0260 Max. : 12.0260
## Lag3 Lag4 Lag5
## Min. :-18.1950 Min. :-18.1950 Min. :-18.1950
## 1st Qu.: -1.1580 1st Qu.: -1.1580 1st Qu.: -1.1660
## Median : 0.2410 Median : 0.2380 Median : 0.2340
## Mean : 0.1472 Mean : 0.1458 Mean : 0.1399
## 3rd Qu.: 1.4090 3rd Qu.: 1.4090 3rd Qu.: 1.4050
## Max. : 12.0260 Max. : 12.0260 Max. : 12.0260
## Volume Today Direction
## Min. :0.08747 Min. :-18.1950 Length:1089
## 1st Qu.:0.33202 1st Qu.: -1.1540 Class :character
## Median :1.00268 Median : 0.2410 Mode :character
## Mean :1.57462 Mean : 0.1499
## 3rd Qu.:2.05373 3rd Qu.: 1.4050
## Max. :9.32821 Max. : 12.0260
SP500[[11]]<-sign(SP500[[3]] - SP500[[7]])
SP500subset<-SP500[1:500,c(1,2,7,8,9,10,11)]
The mean weekly return is 0.149899.
The median weekly return is 0.241.
The mean weekly trading volume is 1.5746176 billion.
The median weekly trading volume is 1.00268 billion.
colnames(SP500subset)<-c("Week","Year","Returns_Lagged_5_Days", "Average_Daily_Vol._in_Billions","Weekly_Returns","Direction", "Previous_4_Day_Trend_Change")
summary(SP500subset)
## Week Year Returns_Lagged_5_Days
## Min. : 1.0 Min. :1990 Min. :-5.1840
## 1st Qu.:125.8 1st Qu.:1992 1st Qu.:-0.9155
## Median :250.5 Median :1994 Median : 0.3250
## Mean :250.5 Mean :1994 Mean : 0.2782
## 3rd Qu.:375.2 3rd Qu.:1997 3rd Qu.: 1.3228
## Max. :500.0 Max. :1999 Max. : 7.3170
## Average_Daily_Vol._in_Billions Weekly_Returns Direction
## Min. :0.08747 Min. :-5.1840 Length:500
## 1st Qu.:0.20696 1st Qu.:-0.9005 Class :character
## Median :0.31004 Median : 0.3415 Mode :character
## Mean :0.37060 Mean : 0.2965
## 3rd Qu.:0.50022 3rd Qu.: 1.3228
## Max. :0.95852 Max. : 7.3170
## Previous_4_Day_Trend_Change
## Min. :-1.000
## 1st Qu.:-1.000
## Median : 1.000
## Mean : 0.034
## 3rd Qu.: 1.000
## Max. : 1.000
The subset’s mean weekly return is 0.296548.
The subset’s median weekly return is 0.3415.
The subset’s mean weekly trading volume is 0.3706017 billion.
The subset’s median weekly trading volume is 0.310037 billion.
SP500subset$Year[SP500subset$Year == "1990"] <- "First Year"
SP500subset$Year[SP500subset$Year == "1991"] <- "Second Year"
SP500subset$Year[SP500subset$Year == "1992"] <- "Third Year"
SP500subset$Year[SP500subset$Year == "1993"] <- "Fourth Year"
SP500subset$Year[SP500subset$Year == "1994"] <- "Fifth Year"
SP500subset$Year[SP500subset$Year == "1995"] <- "Sixth Year"
SP500subset$Year[SP500subset$Year == "1996"] <- "Seventh Year"
SP500subset$Year[SP500subset$Year == "1997"] <- "Eighth Year"
SP500subset$Year[SP500subset$Year == "1998"] <- "Ninth Year"
SP500subset$Year[SP500subset$Year == "1999"] <- "Tenth Year"
SP500subset[SP500subset == "Up"] <-1
SP500subset[SP500subset == "Down"] <--1
SP500subset[[6]]<-as.numeric(SP500subset[[6]])
SP500subset[[8]]<-abs((SP500subset[[6]] - SP500subset[[7]])/2)
str(SP500subset)
## Classes 'data.table' and 'data.frame': 500 obs. of 8 variables:
## $ Week : int 1 2 3 4 5 6 7 8 9 10 ...
## $ Year : chr "First Year" "First Year" "First Year" "First Year" ...
## $ Returns_Lagged_5_Days : num -3.484 -0.229 -3.936 1.572 0.816 ...
## $ Average_Daily_Vol._in_Billions: num 0.155 0.149 0.16 0.162 0.154 ...
## $ Weekly_Returns : num -0.27 -2.576 3.514 0.712 1.178 ...
## $ Direction : num -1 -1 1 1 1 -1 1 1 1 -1 ...
## $ Previous_4_Day_Trend_Change : num 1 -1 1 1 -1 1 1 -1 -1 1 ...
## $ V8 : num 1 0 0 0 1 1 0 1 1 1 ...
## - attr(*, ".internal.selfref")=<externalptr>
head(SP500subset, n=12)
## Week Year Returns_Lagged_5_Days Average_Daily_Vol._in_Billions
## 1: 1 First Year -3.484 0.1549760
## 2: 2 First Year -0.229 0.1485740
## 3: 3 First Year -3.936 0.1598375
## 4: 4 First Year 1.572 0.1616300
## 5: 5 First Year 0.816 0.1537280
## 6: 6 First Year -0.270 0.1544440
## 7: 7 First Year -2.576 0.1517220
## 8: 8 First Year 3.514 0.1323100
## 9: 9 First Year 0.712 0.1439720
## 10: 10 First Year 1.178 0.1336350
## 11: 11 First Year -1.372 0.1490240
## 12: 12 First Year 0.807 0.1357900
## Weekly_Returns Direction Previous_4_Day_Trend_Change V8
## 1: -0.270 -1 1 1
## 2: -2.576 -1 -1 0
## 3: 3.514 1 1 0
## 4: 0.712 1 1 0
## 5: 1.178 1 -1 1
## 6: -1.372 -1 1 1
## 7: 0.807 1 1 0
## 8: 0.041 1 -1 1
## 9: 1.253 1 -1 1
## 10: -2.678 -1 1 1
## 11: -1.793 -1 -1 0
## 12: 2.820 1 -1 1
SP500subset[5,]
## Week Year Returns_Lagged_5_Days Average_Daily_Vol._in_Billions
## 1: 5 First Year 0.816 0.153728
## Weekly_Returns Direction Previous_4_Day_Trend_Change V8
## 1: 1.178 1 -1 1
SP500subset[70,]
## Week Year Returns_Lagged_5_Days Average_Daily_Vol._in_Billions
## 1: 70 Second Year -1.329 0.175766
## Weekly_Returns Direction Previous_4_Day_Trend_Change V8
## 1: 0.754 1 -1 1
SP500subset[133,]
## Week Year Returns_Lagged_5_Days Average_Daily_Vol._in_Billions
## 1: 133 Third Year -0.967 0.179974
## Weekly_Returns Direction Previous_4_Day_Trend_Change V8
## 1: -0.002 -1 -1 0
SP500subset[500,]
## Week Year Returns_Lagged_5_Days Average_Daily_Vol._in_Billions
## 1: 500 Tenth Year -2.14 0.70362
## Weekly_Returns Direction Previous_4_Day_Trend_Change V8
## 1: -0.411 -1 1 1
Do most days that follow a higher/lower return a day ago than 5 days ago experience a change in that same direction? Only by a small amount. The percentage of days that this happened is 52.9%.