Better Investment

Benchmark # 5
By: Dan Lulseged
 Choose a traded investment and data for a least 5 years
Create a CODEBOOK
Date: Day of the week
Which variables are
Open: Opening price of stock
categorical?
High: Highest price of the stock in the trading day

Date
Low: Lowest price of the stock in the trading day

Close: Closing price of the stock in the trading day Which variables are
numerical?
Adj Close: Adjusted stock price after close of day Open, High, Low, Close, Adj Close, Volume,
Days
Volume: Number of trades in a day

Days: Days owned starting with a day

What kind of investment did you choose
and why?
I Chose Nike as an investment because that’s typically what I wear the
most.

Show the head and tail of your data

Describe the correlation between days and
Adjusted closing price. (Show the r value on
the correlation table)
The correlation is Positive, Moderate, and linear. The R value is 0.73
according to the correlation table.
Create a scatterplot and then a scatterplot with
regression line of Days and Adjusted Close.

What do you notice about this investment over time?

I noticed that this investment has frequent small dips and ups but
overall was increasing but it reached its peak at one point and is
continuing the trend of ups and downs but now overall it is
decreasing.
Create a Regression equation from the regression print out. Record the r2 , Y
intercept, and slope with the print out.
r2=0.53, Y= 68.3+0.10x
● Explain what slope is telling us, The slope is telling us that everyday the adj close
price is increasing by around 10 cents.
● If this is a good model and why. This is a good model because you are making
profit.It is better for your money to be making money instead of it just sitting at
the bank .
● Predict the investment value in 3650 days. Y= 68.3+0.10(3650)=433.3
The value would be 433.3 dollars
What is the ROI?

433.3-68.3= 365/68.3=5.34 x 100= 534.

The rate of Investment is 534 percent on day 3650.

Was this a good investment?

This is a very good investment because even though it takes a

while to see a significant increase in profit but either way it is
better for your money to be making money instead of it sitting in
your bank not doing anything.
 Final thoughts

Overall i think investing in investments is extremely beneficial and this just

encouraged my prenotion on that investing none of your money is not very
smart. I will definitely continue my investment that I am currently doing and
escalate it by furthering my knowledge in the future.