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Investment Unit
Using Regressions to Analyze Stocks
Term | Definition |
---|---|
Bull Market | A long period of rising stock prices. |
bear market | A steady drop in the stock market over a period of time. |
Ticker Symbol | Letters are used to identify a corporation. |
Market Cap | Refers to how much a company is worth as determined by the stock market. |
Linear Regression | Equation of best fit. |
Slope of Linear Regression | May indicate how quickly a stock has increased or decreased in value compared to the rest of the market. |
R-squared | Can help analysts estimate the volatility of the stock. It may indicate how well the data follow that trend line. |
Return on Investment (ROI) | Expressed as a percentage and is calculated by dividing an investment's net profit (or loss) by its initial cost. |