Posts in category All News
Nifty June futures trade at discount (21-06-2024)
Smallcap momentum portfolio (21-06-2024)
Please ensure that you have taken dividend, bonus etc into account and omitted special trading days.
Smallcap momentum portfolio (21-06-2024)
Please ensure that you have taken dividend, bonus etc into account and omitted special trading days.
Markets end in red; Sensex falls 269 points (21-06-2024)
Sensex falls! These stocks fell 5% or more in Friday’s session (21-06-2024)
DIY Momentum QnA and Discussion (21-06-2024)
Assume to calculate Z-scores in Google Sheets, start by entering your stock returns data into the sheet. Suppose you have five stocks with the following returns: 10%, 15%, 5%, 20%, and 12%. Enter the stock names in column A and their returns in column B.
Next, calculate the mean return. In a cell below your data, use the formula =AVERAGE(B1:B5) to find the average return. For this example, the mean return is 12%.
Then, calculate the standard deviation of the returns. In another cell, use the formula =STDEVP(B1:B5) to get the standard deviation. Here, it’s approximately 5.16.
Now, compute the Z-score for each stock’s return. In a new column, use the formula (DataValue - Mean) / Standard Deviation. For example, for the return in cell B1, the formula will be =(B1 - $B$6) / $B$7, where B6 contains the mean and B7 contains the standard deviation. Drag this formula down to apply it to all the returns.
After calculating, you will see Z-scores for each stock. A Z-score of -0.387 for stock A means its return is 0.387 standard deviations below the mean. A Z-score of 0.581 for stock B indicates its return is 0.581 standard deviations above the mean. This helps in identifying which stocks have significantly higher or lower returns compared to the average.
DIY Momentum QnA and Discussion (21-06-2024)
Assume to calculate Z-scores in Google Sheets, start by entering your stock returns data into the sheet. Suppose you have five stocks with the following returns: 10%, 15%, 5%, 20%, and 12%. Enter the stock names in column A and their returns in column B.
Next, calculate the mean return. In a cell below your data, use the formula =AVERAGE(B1:B5) to find the average return. For this example, the mean return is 12%.
Then, calculate the standard deviation of the returns. In another cell, use the formula =STDEVP(B1:B5) to get the standard deviation. Here, it’s approximately 5.16.
Now, compute the Z-score for each stock’s return. In a new column, use the formula (DataValue - Mean) / Standard Deviation. For example, for the return in cell B1, the formula will be =(B1 - $B$6) / $B$7, where B6 contains the mean and B7 contains the standard deviation. Drag this formula down to apply it to all the returns.
After calculating, you will see Z-scores for each stock. A Z-score of -0.387 for stock A means its return is 0.387 standard deviations below the mean. A Z-score of 0.581 for stock B indicates its return is 0.581 standard deviations above the mean. This helps in identifying which stocks have significantly higher or lower returns compared to the average.