About: We are financial investors, wanting to know more about Disney’s stock. The ultimate goal is to analyze and evaluate Disney’s stock and to see if it is worth buying at this time.

Q1 Get stock prices from the past 10 years

## # A tibble: 2,516 x 7
##    date        open  high   low close   volume adjusted
##    <date>     <dbl> <dbl> <dbl> <dbl>    <dbl>    <dbl>
##  1 2009-05-11  25.1  25.2  24.7  24.7 14656600     21.5
##  2 2009-05-12  24.9  24.9  23.9  24.3 15536900     21.2
##  3 2009-05-13  23.9  24.0  23.4  23.6 14055900     20.6
##  4 2009-05-14  23.6  24.0  23.3  23.5 11893400     20.5
##  5 2009-05-15  23.5  24.2  23.3  23.4 20991800     20.4
##  6 2009-05-18  23.6  24.3  23.5  24.2  9355300     21.1
##  7 2009-05-19  24.2  24.4  23.8  23.8 11906400     20.8
##  8 2009-05-20  24    24.3  23.4  23.5 10524200     20.5
##  9 2009-05-21  23.1  23.3  22.9  23.2 12632300     20.2
## 10 2009-05-22  23.2  24    23.0  23.7 11099100     20.7
## # … with 2,506 more rows

Q2 Calculate the yearly returns:

## # A tibble: 11 x 2
##    date       yearly.returns
##    <date>              <dbl>
##  1 2009-12-31        0.320  
##  2 2010-12-31        0.176  
##  3 2011-12-30        0.0165 
##  4 2012-12-31        0.348  
##  5 2013-12-31        0.553  
##  6 2014-12-31        0.249  
##  7 2015-12-31        0.129  
##  8 2016-12-30        0.00672
##  9 2017-12-29        0.0476 
## 10 2018-12-31        0.0361 
## 11 2019-05-08        0.231

Q3 Create a line chart:

Q4 Calculate the monthly returns:

## # A tibble: 121 x 2
##    date       monthly.returns
##    <date>               <dbl>
##  1 2009-05-29        -0.0198 
##  2 2009-06-30        -0.0367 
##  3 2009-07-31         0.0767 
##  4 2009-08-31         0.0366 
##  5 2009-09-30         0.0545 
##  6 2009-10-30        -0.00328
##  7 2009-11-30         0.104  
##  8 2009-12-31         0.0795 
##  9 2010-01-29        -0.0837 
## 10 2010-02-26         0.0572 
## # … with 111 more rows

Q5 Create a histogram:

Q6 Create a density plot:

Q7 Based on the graphs shown above what is Disney’s overall financial performance?

The line chart shows that Disney’s stock back in 2014 the yearly returns were much higher. After 2014, Disney’s yearly returns started to drop, but in 2017 it started rising again. Therefore Disney’s stock has been going up ever since then. On the positive end of the histogram there is more positive than negative values. Which can be beneficial to someone who wants to invest. The density chart shows that its peak is to the left which means that it is skewed positive. It also can be seen skewed to the right. This means that there is a higher density of a lower return.

Q8 Create a kurtosis and skewness

## # A tibble: 1 x 1
##   skewness.1
##        <dbl>
## 1      0.729
## # A tibble: 1 x 1
##   kurtosis.1
##        <dbl>
## 1     -0.254

Q9 Would you consider the standard deviation as an appropriate measure of risk for Disney?

Disney has a positive skewness which means large positive returns are likely to occur more often. Disney has kurtosis that is below zero so larger returns of both positive and negative are less likely to occur more often (they will have skinnier tails). Because of this information, I have determined that standard deviation is not an appropriate measure of risk for Disney because they are not normally distributed so there is a greater chance of variation.

Q10 Import Disney’s Stock

## # A tibble: 251 x 7
##    date        open  high   low close   volume adjusted
##    <date>     <dbl> <dbl> <dbl> <dbl>    <dbl>    <dbl>
##  1 2018-05-09  102.  102.  99.3 100.0 18345700     98.4
##  2 2018-05-10  100.  102. 100.  102.   8927300    100. 
##  3 2018-05-11  102.  102. 101.  102.   7036000    100. 
##  4 2018-05-14  102.  103. 102.  102.   9891900    101. 
##  5 2018-05-15  102.  103. 102.  103.   5762400    101. 
##  6 2018-05-16  103.  105. 103.  105.   8111600    103. 
##  7 2018-05-17  105.  105. 104.  104.   7320600    103. 
##  8 2018-05-18  104.  105. 104.  104.   5427300    102. 
##  9 2018-05-21  104.  105. 104.  104.   5848700    102. 
## 10 2018-05-22  104.  105. 104.  104.   6971600    102. 
## # … with 241 more rows

Q 11a Calculate 20 day moving averages and 20-day running standard deviation:

## # A tibble: 251 x 9
##    date        open  high   low close   volume adjusted   SMA    SD
##    <date>     <dbl> <dbl> <dbl> <dbl>    <dbl>    <dbl> <dbl> <dbl>
##  1 2018-05-09  102.  102.  99.3 100.0 18345700     98.4    NA    NA
##  2 2018-05-10  100.  102. 100.  102.   8927300    100.     NA    NA
##  3 2018-05-11  102.  102. 101.  102.   7036000    100.     NA    NA
##  4 2018-05-14  102.  103. 102.  102.   9891900    101.     NA    NA
##  5 2018-05-15  102.  103. 102.  103.   5762400    101.     NA    NA
##  6 2018-05-16  103.  105. 103.  105.   8111600    103.     NA    NA
##  7 2018-05-17  105.  105. 104.  104.   7320600    103.     NA    NA
##  8 2018-05-18  104.  105. 104.  104.   5427300    102.     NA    NA
##  9 2018-05-21  104.  105. 104.  104.   5848700    102.     NA    NA
## 10 2018-05-22  104.  105. 104.  104.   6971600    102.     NA    NA
## # … with 241 more rows

Q11b Calculate the Bollinger Bands:

## # A tibble: 251 x 11
##    date        open  high   low close volume adjusted   SMA    SD sd2up
##    <date>     <dbl> <dbl> <dbl> <dbl>  <dbl>    <dbl> <dbl> <dbl> <dbl>
##  1 2018-05-09  102.  102.  99.3 100.0 1.83e7     98.4    NA    NA    NA
##  2 2018-05-10  100.  102. 100.  102.  8.93e6    100.     NA    NA    NA
##  3 2018-05-11  102.  102. 101.  102.  7.04e6    100.     NA    NA    NA
##  4 2018-05-14  102.  103. 102.  102.  9.89e6    101.     NA    NA    NA
##  5 2018-05-15  102.  103. 102.  103.  5.76e6    101.     NA    NA    NA
##  6 2018-05-16  103.  105. 103.  105.  8.11e6    103.     NA    NA    NA
##  7 2018-05-17  105.  105. 104.  104.  7.32e6    103.     NA    NA    NA
##  8 2018-05-18  104.  105. 104.  104.  5.43e6    102.     NA    NA    NA
##  9 2018-05-21  104.  105. 104.  104.  5.85e6    102.     NA    NA    NA
## 10 2018-05-22  104.  105. 104.  104.  6.97e6    102.     NA    NA    NA
## # … with 241 more rows, and 1 more variable: sd2down <dbl>

Q11c Keep variables to build the Bollinger Bands:

## # A tibble: 251 x 5
##    date       close   SMA sd2up sd2down
##    <date>     <dbl> <dbl> <dbl>   <dbl>
##  1 2018-05-09 100.0    NA    NA      NA
##  2 2018-05-10 102.     NA    NA      NA
##  3 2018-05-11 102.     NA    NA      NA
##  4 2018-05-14 102.     NA    NA      NA
##  5 2018-05-15 103.     NA    NA      NA
##  6 2018-05-16 105.     NA    NA      NA
##  7 2018-05-17 104.     NA    NA      NA
##  8 2018-05-18 104.     NA    NA      NA
##  9 2018-05-21 104.     NA    NA      NA
## 10 2018-05-22 104.     NA    NA      NA
## # … with 241 more rows

Q11d Transform data to long form from wide form for graphing

## # A tibble: 1,004 x 3
##    date       type  price
##    <date>     <chr> <dbl>
##  1 2018-05-09 close 100.0
##  2 2018-05-10 close 102. 
##  3 2018-05-11 close 102. 
##  4 2018-05-14 close 102. 
##  5 2018-05-15 close 103. 
##  6 2018-05-16 close 105. 
##  7 2018-05-17 close 104. 
##  8 2018-05-18 close 104. 
##  9 2018-05-21 close 104. 
## 10 2018-05-22 close 104. 
## # … with 994 more rows

Q11e Visualize data

Q12 Overall how has Disney’s stock performed over the years?

The Bollinger bands narrowed in March 2019 which makes it more volatile. This could be the buying of 21st Fox Century, they are working on starting their Disney Plus Platform, and is the majority owner of HULU. Based on the upper Bollinger band you can see in April 2019 that the stock was overbought which may be due to the recent acquisitions. Based on the lower Bollinger band you can see in December 2018 that the stock was oversold this could be due to the S&P 500 market drop of 11% which made Disney’s stock to fall 8%.

Q13 Would we buy/invest in this stock?

Yes, we would invest in this stock. Disney is a World Class company, but because of their recent acquisitions it has caused for an expansion on the company itself. With this expansion it has allowed for them to branch out into different industries like entertainment, they have followed trends on streaming services, and they are expanding on their customer base. Because of the density plot it looks like they have a lower chance of having a higher return but because of the brand “Disney” we would be willing to take that risk. It would be best to invest now before stock prices rise exponentially.Disney does have higher volatility but we are willing to take the risk because the reward is likely to be higher.