Big Tech Stock Prices

INFO 526 - Spring 2024 - Project 1

Team Crimson: Arun, Jasdeep, Mohit, Pradnya, Varun

The Rise and Fall: Historical Patterns in Big Tech Stock Prices

Data Description

  • Big Tech Stock Price & Big Tech Companies datasets from tidytuesday.
  • Includes open, close, high, low and adj_close prices for company.
  • Data spans from 2010 to 2022, allowing for in-depth analysis and trends.
  • Our Data:
    • big_tech_companies dataset
    • big_tech_stock_prices dataset

Objective

  • Delving into the performance of 14 leading tech companies, with a focus on understanding the influence of COVID-19.
  • Question 1: Which companies have experienced the highest/lowest impact on their stock prices due to the pandemic?
  • Question 2: What patterns do we see in the positive gain days over the given period?

Question 1

Which companies have experienced the highest/lowest impact on their stock prices due to the pandemic?

Plot1

  • Depicts trends for all 14 companies using geom_line

  • Annotates with the COVID-19 period.

  • Highlights notable trends of Adobe and Netflix with distinct line colors.

  • Includes comments for better understanding.

Plot2

  • Zooms into the period from 2018 to 2022.

  • Utilizes de-trending days plot based on 14 linear models.

  • Ratios calculated for insights on a standardized scale and plotted using geom_line

  • Facets maintain color patterns from the first plot.

Plot3

  • Focuses on starting date (2018), 2020, and closing date (2022).

  • Extracts two-year and five-year returns for all companies and calculates average returns for all companies

  • Bar plot for descending two-year returns and five-year returns are plotted and then combined using cowplot

Impact of Stock Prices around COVID-19

Discussion

  • Pandemic Impact on Winners and Losers (2022):
    • Netflix and Adobe experienced significant declines.
    • Factors: post-Covid-19 effects, sales slowdown, recession fears, internal issues, rising unemployment. Apple, Microsoft, and IBM showed resilience in 2022.
  • Long-Term Trends (Overall):
    • Apple, Tesla, and Microsoft emerged as standout gainers.
    • Tesla recorded the highest 5-year returns, surging from 17% to an impressive 94%.

Question 2:

What patterns do we see in the positive gain days over the given period?

Plot1:

  • Illustrate overall gain-days of all companies from 2010 to 2022 on a yearly basis.
  • Animated series of 12 column charts representing different companies.
  • Dynamic presentation reveals peaks and troughs of gain days across these years and utilizes geom_text to annotate the number of gain days for swift comprehension.

Plot2:

  • Provide a deeper understanding of trading dynamics based on gain-days.
  • Gain-days grouped by quarter and weekday and averages of approximately 12 weekdays per quarter for consistency.
  • Ridge density plots visually articulate the spread and peaks of gains across weekdays.
  • Facilitates identification of specific days more favorable for trading in the context of individual tech companies.

+Ve Gain Days Trading Strategies

Discussion

  • Leveraging Positive Gain Days:
    • Examining positive gain days across weekdays.
    • Short-term investors can strategically align with historical performance.
  • Optimizing Trading Strategies:
    • Incorporates return patterns and positive gain day distributions.
    • Empowers traders with insights for effective day and weekly strategies.
    • Graphs serve as valuable tools in the dynamic stock market landscape.

THANK YOU

💲 The Crimson