The following python script is used to automatically pull stock prices for a given company and compute its historical volatility over 1, 3, and 12 months. The volatility calculations can then be compared to the implied volatility of an option for the same stock. Histograms showing the frequency of returns are also plotted.
Let me know in the comments what other automated programs you’d like to see in the future (or improvements on existing ones)! Continue reading “Calculating Historical Price Volatility (with Python)”
1. Analyze revenues by segment
2. Calculate EBIT margins for each segment
3. Calculate the proportion of capital expenditures to the proportion of total assets by segment Continue reading “Business Segment Analysis”
Stock Investment Strategies
James O’Shaughnessy’s What Works on Wall Street looks at the most effective long-term investment strategies on Wall Street. It shows that selecting stocks using rational methods can beat the simple strategy of indexing to the S&P 500. Empirical evidence reveals that stocks selling at deep discounts to cash flow, sales, and earnings consistently beat the market in the long run. Few investors however are capable of rigorously sticking with such a strategy during market turmoil. The key to long-term success is an unwavering disciplined implementation of an investment strategy. That is why the S&P 500 consistently beats 70% of traditionally managed funds. While managers change their style over time and rotate between funds, the S&P 500 never varies from its systematic bet on large capitalization stocks. Continue reading “What Works on Wall Street”