WEBVTT 00:01.070 --> 00:04.550 Welcome to the section on advanced analysis techniques. 00:04.550 --> 00:09.920 Our cost is getting more and more serious and also more practical after having mastered the unnecessary 00:09.920 --> 00:16.610 coding basics in the prior sections and importing financial data from an Excel file lists the typical 00:16.610 --> 00:18.660 workflow and this is here. 00:18.680 --> 00:27.580 The first video in the section then we are going on with creating rolling statistics and a major application 00:27.580 --> 00:32.270 and finance are simple moving averages so 00:34.800 --> 00:41.890 here we have for example the close price of the S&P 500 index that we are working with heavily in this 00:41.980 --> 00:42.910 section. 00:43.030 --> 00:50.320 So we have the closing prices and also the simple moving average for the last 50 days and also for the 00:50.320 --> 01:02.140 last 200 days and then we learn how to aggregate and report the performance of rolling statistics so 01:02.140 --> 01:09.970 here we have the rolling return and the rolling risk of the S&P 500 from 1974 until today. 01:12.110 --> 01:19.690 And we also get an intuition on the time diversification effect so typically when investing in stocks 01:20.050 --> 01:28.600 a investment period of one year is uh pretty riskier but when extending the investment period then the 01:28.660 --> 01:36.020 risk actually diminishes and the reason is that periods with poor returns are offset by periods with 01:36.020 --> 01:37.900 the high or good returns. 01:37.900 --> 01:41.970 Then next we learn the difference between simple returns and lock returns. 01:41.980 --> 01:48.820 So this is actually a more theoretical lecture but with pretty important implications on the day to 01:48.820 --> 01:53.190 day business so that's a pretty important lecture here also. 01:53.520 --> 02:00.820 Then we are creating the S&P 500 return triangle which is actually a great way to visualize and to aggregate 02:00.880 --> 02:03.160 past performance. 02:03.160 --> 02:06.280 So that's quite clear actually. 02:06.280 --> 02:10.960 So that's what the S&P 500 performance the return triangle. 02:11.470 --> 02:17.410 So here we have the triangle with the returns but we can also create the triangle with that tell us 02:18.160 --> 02:26.950 so that we can see here and finally we will also create the return radar. 02:31.870 --> 02:38.050 So that looks actually pretty cool and aggregates and summarizes the past performance. 02:38.050 --> 02:44.320 And finally we have some more specialized topics for example exponentially weighted moving averages. 02:44.320 --> 02:49.120 So there's lots of content in the section and many things to learn and I hope to see you also in the 02:49.120 --> 02:50.290 next videos by.