Quantitative Analysis for Finance and Investments

The purpose of this project is to understand the features of a set of economic or financial variables and be able to find how they are related linearly by using regression methods. Use Excel to perform calculations.

Find a relevant research question associated to the dataset. The statistical analysis will help you to find answers to that question. Submit a written report intended for a professional audience. Your report should contain :

• Abstract – summarise objective, contents of the study and conclusions
• Introduction (200 words) – present a relevant financial question and its motivation/justification based on relevant references.
• Methodology (400 words)- describe the methods and procedures used for this project
• Data description (600 words)- describe statistically the variables
• Analysis and Findings (600 words) – analyse the covariance/correlation structure of the data set taking into account the previous data description.
• Conclusions and Recommendations (200 words)
• References

Supplementary calculations and intermediate results should be supplied in appendices at the end of your report in the form of tables or graphs. Relevant and important graphs and tables should be part of the report.

There is maximum word limit of 2000 words. This is an INDIVIDUAL assignment. The assignment will be submitted as word document (.doc) on blackboard by 15th April 2021 at 23.58. The Excel data file and excel output files related to the material presented on the assignment need to be uploaded to a specific shared folder by deadline. All the data should be organized in one Excel file named FIN5B1-StudentName-StudentNumber.

The following tasks will guide you through the statistical analysis:
Find a data set: Choose a data set with 3 variables (One different dataset per student). And organise the data in a Excel file. Describe the sample in terms of number of observations and frequency. Present the dataset using a relevant graph and explain the main features of each variable.
Data description:
Discuss and describe your data as well as the reason(s) for your choice of data and using “Descriptive Statistics” for each variable (Variables X, Y1,Y2 and Y3)
Plot all variables and comment on graph(s).
Transform your prices/indices variables into returns. (Rename the variables: x, y1, y2, y3)
Describe statistically the transformed data set (plot it) and comment about your results.
Plot each Y (y) variable against the X (x) variable in a scatter plot and comment about the relation between each pair of variables.
Regression analysis:
Calculate covariances and correlation coefficients of t