Welcome to the section on advanced analysis techniques.
Our cost is getting more and more serious and also more practical after having mastered the unnecessary
coding basics in the prior sections and importing financial data from an Excel file lists the typical
workflow and this is here.
The first video in the section then we are going on with creating rolling statistics and a major application
and finance are simple moving averages so
here we have for example the close price of the S&P 500 index that we are working with heavily in this
section.
So we have the closing prices and also the simple moving average for the last 50 days and also for the
last 200 days and then we learn how to aggregate and report the performance of rolling statistics so
here we have the rolling return and the rolling risk of the S&P 500 from 1974 until today.
And we also get an intuition on the time diversification effect so typically when investing in stocks
a investment period of one year is uh pretty riskier but when extending the investment period then the
risk actually diminishes and the reason is that periods with poor returns are offset by periods with
the high or good returns.
Then next we learn the difference between simple returns and lock returns.
So this is actually a more theoretical lecture but with pretty important implications on the day to
day business so that's a pretty important lecture here also.
Then we are creating the S&P 500 return triangle which is actually a great way to visualize and to aggregate
past performance.
So that's quite clear actually.
So that's what the S&P 500 performance the return triangle.
So here we have the triangle with the returns but we can also create the triangle with that tell us
so that we can see here and finally we will also create the return radar.
So that looks actually pretty cool and aggregates and summarizes the past performance.
And finally we have some more specialized topics for example exponentially weighted moving averages.
So there's lots of content in the section and many things to learn and I hope to see you also in the
next videos by.