Project Title: S&P 500 Stock Analysis: Is Technology the right investment for the future?
Project Description
Based on the backgrounds and interests of the group members, we would like to explore trends in the equity investment market by using historical US stock market information as a proxy. The goal is to perform analysis that would answer the following questions
- How has the composition of stocks by industry changed over time?
- What are the daily and monthly price changes at individual stock and industry level?
- If we are to select a stock by industry at random, what are the chances that it has positive return? Which industry should we invest in for the most return? If we pick the top 5 expensive stock in this industry, What is the monthly return over the period for these 5 stocks? Is there any Seasonality for the monthend close price? Is there autocorrelation of the monthend close prices of each of the 5 stocks? Visualize the correlation between the returns of all pairs of stocks.
- Is there a linear correlation between volatility of prices to overall return?
- Is there a correlation between days of loss until a day of positive return?