Hey Reddit,
I was doing some shenanigans with statistic formulas, this is just a brief observation, but i got the closing price of INTC and AMD of the last year, from 1st January 2022 to the 31th December 2022 and analyzied it from a statistical poit of view.
Here what i got
| FIVE-NUMBER SUMMARY | INTC | AMD |
|---|---|---|
| MIN | 25.04 | 55.94 |
| QUARTILE 1 | 29.32 | 73.79 |
| MEDIAN | 37.99 | 89.82 |
| QUARTILE 2 | 46.92 | 105.40 |
| MAX | 55.91 | 150.24 |
In term of volatility, both stocks has the same volatility, it means that if you bouth only INTC or only AMD of both together some day randomly in the 2022, you will more or less get the same return, probably somewhere near the negative rate.
| VARIATIONS | INTC | AMD |
|---|---|---|
| AVERAGE | 38.59 | 90.89 |
| VARIANCE | 79.85 | 449.71 |
| STANDARD DEVIATION | 8.94 | 21.21 |
| VAR. COEFFICIENT | 23.15% | 23.33% |
the coefficent of variance is used to compare two data set that has different measurements or scale, and it is used to compare their standard deviation.
Standard deviantion alone tells us that ADM is more volatile than INTC, but refining the data we can see that they are the same
After all, they operate in a similar, if not same industry, this explains why their volatility, compared, are the same
Leave a Reply