Stock Analysis

Here is the explanation of scripts that are shown in the code section.

• Mean is the return of the stock for the certain period in the past.

• Standard deviation is one of the indicators of volatility. The higher the value is, the more volatile the stock is.

• Kurtosis is one more indicator of volatility. High Kurtosis has fat tails representing extreme values and identifying volatile stock. It can be employed by day trader who can benefit from the sharp movements of the asset. Whereas Low Kurtosis is a sign of less volatile stock which is more preferable for long-term investor.

• Histogram with Normal Distribution gives invaluable information about stock behaviour. For example, positively skewed distribution represents stock that had extreme positive returns previously. Negatively-skewed distribution might be valuable for contrarian investors who prefer stocks that performed poorly in the past.