Introduction to FinTech Using R - How to Time Stock Market, a Qualitative Discussion

Introduction to FinTech Using R - How to Time Stock Market, a Qualitative Discussion

Assessment

Interactive Video

Information Technology (IT), Architecture, Business

University

Hard

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The video discusses a qualitative approach to timing the stock market using a distance matrix to convert prices into a normal distribution. It explains Ying's timer function, which uses buy and sell coefficients to determine market entry and exit points. The tutorial applies this algorithm to SPY, Apple, and Facebook stocks, highlighting the importance of adjusting coefficients based on trading strategies. It also addresses challenges with analyzing new IPOs like Uber and Lyft due to limited data.

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4 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

In what ways can a trader use the algorithm to achieve benchmark-beating performance?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

How does the algorithm determine the optimal time to buy or sell stocks?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

Discuss the implications of using a stock that has not experienced financial crises in the algorithm.

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the potential risks of trading stocks that have recently gone public (IPOs)?

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