MarketVisualisation

Wednesday, October 21, 2009

Gapminder Visualisation For Analysing Multiple Stocks Price/Volume Behaviour

Here the Gapminder is used as a tool for the analysis of raw stock market data. This analysis embodies multiple stocks and attempts to extract behaviour in relation to each other. Hence, it is possible to come up with a fresh trading strategy and such a visualisation helps to back-test this new trading algorithm, as such this trading strategy is called “The Dance”.

Here, the below Gapminder visualisation portrays an intraday stock price fluctuation. Here we can notice that these three chosen stocks from a given sector exhibits several phenomenon:
-The stock price of chosen stocks do fluctuate more-or-less in harmony
-The 'MM' stock can possibly act as the 'key-stock' for determining the buy strategy for all the three stocks
-As the price and volume are sampled once in the morning i.e. @ 10:17 and in the evening @ 18:20, we also concluded that the it is slightly more profitable on an aggregate, if we buy all the three stocks in the evening rather than in the morning



Note! These stocks are traded at Helsinki Stock Exchange and the raw market data used for this visualisation dates from 18th August 2009 to 20th October 2009. The raw market data used for generating the above visualisation consists of Price & volume sampled @ 10:17 and 18:20.
In addition, calculated data from the above raw market data are:
-Intraday Price Difference from the sampled price data
-Above Average Volume @ 10:17 (Take account of the Average Volume, if average volume is recorded above 100%, 144%, 233%, 377% @ 10:17)