lab_expDataAnalysis - Statistics and Data Analysis...

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Statistics and Data Analysis, 2016-2017RLabExploratory Analysis of Financial Time-SeriesDescriptionThis lab uses four European broad stock market indices inR’sEuStockMarketsdatabase. First,run the following code lines to access the database, learn its mode and class. Then, plot thefour time series.> data(EuStockMarkets)> mode(EuStockMarkets)> class(EuStockMarkets)> plot(EuStockMarkets)On savingRplotsIf you right-click on the plot, a menu for printing or saving will open.There are alternativemethods for printing graphs. For example, the following command lines> pdf("fig_EuStocks.pdf", width = 6, height = 5)> plot(EuStockMarkets, main = "Prices")> graphics.offwill send a pdf file to the working directory.Price Series vs. ReturnsProblem 1Write a brief description of the time series plots of the four indices. Do the serieslook stationary? Do the fluctuations in the series seem to be of constant size? If not, describehow the volatility fluctuates.Next, run the following code lines and plot the log returns.> log.returns <- diff(log(EuStockMarkets))

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