In this blog, we are going to introduce you to one of the most famous models in the asset pricing model. Back then in 1993 two researchers (Fama and French) in finance created a model, which proved that three risk factors (market risk premium, size, and value) can statistically and significantly explain the fluctuations of […]
Fama and French three-factor model | Detailed Explanation Read More »
In Part 1 and Part 2 of this series, we examined how an individual’s qualitative characteristics can affect the results of our regression model. First, we analysed how a categorical variable, such as [gender], changes the constant of our regression model (also known as intercept dummy). Subsequently, we examined the impact of multiple categorical and
Heat plots, also known as heatmaps, are one of the best visualization tools in a data science. It allows you to quickly assess a dataset, whether you’re just looking for patterns in a set of variables, or need to perform more complex multivariate analysis. A heatmap uses color gradients to create a visual representation of
After checking the stationarity, the next step is to select the appropriate model for our data to predict future observations in order to enhance things. For this purpose, a number of models are available. We will discuss the ARIMA model. ARIMA (Auto Regressive Integrated Moving Average) model, which comprises three parts AR, I, and MA,.
Time series analysis is a method of examining a set of data points collected over a period of time. Time series analysis implies analysts recording data points at constant intervals over an established span rather than just periodically or arbitrarily. It is simple to attain using the ts() method and certain parameters. Time series use
