International Journal of Statistics and Applied Mathematics
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International Journal of Statistics and Applied Mathematics

2021, Vol. 6, Issue 6, Part B

Analysis of S&P 500 stocks: Long-term vs short-term investment


Author(s): Thinh Kieu, Phong Luu, Brian Shon and Noah Yoon

Abstract:
This paper is concerned with analyzing the stocks in the Standard & Poors 500 Index that potentially yield high returns. To achieve this goal, historical stock prices and their corresponding simple moving averages are used together to capture the stock trend directions. When the time series of the stock crosses over its corresponding simple moving average line from below (or above), it indicates an up (or down) trend signal and a buy (or sell) is initiated. A trading strategy consisting of these buying and selling indicators is implemented. Simple moving averages of various lengths are constructed and employed in order to maximize the return for each stock. The results suggest that long-term trading can potentially yield high returns and short-term trading generally perform poorly.


DOI: 10.22271/maths.2021.v6.i6b.761

Pages: 158-164 | Views: 311 | Downloads: 16

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How to cite this article:
Thinh Kieu, Phong Luu, Brian Shon, Noah Yoon. Analysis of S&P 500 stocks: Long-term vs short-term investment. Int J Stat Appl Math 2021;6(6):158-164. DOI: 10.22271/maths.2021.v6.i6b.761
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