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problem

hi all,
i am new member of this community. i have a problem and want its solution as soon as possible. we have two companies share closing prices of each day. like for airtel and hcl. so when airtel shares increase hcl increase and vice versa. let sometimes airtel:hcl ratio is 1.5 and sometimes its 2 or somewhat. so i want to know how many days it will take to go from 1.5 to 2??? kindly suggest me some papers or study material to go for solving it.


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Tue Nov 18, 2008 4:35 am

nehamehra13
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Message #3014 of 4104 |
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can anybody help me in solving this problem Suppose the scatter plot of observations (Yi, Xi), i=1,2,3,…,n. shows that the points lies exactly on a...
dipesh089
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Jun 6, 2008
10:11 am

hi dipesh in this case you wont get correlation coeff so just try some transformation may be log will work dipesh089 <dipesh089@...> wrote: can...
vishwesh haldavanekar
vishwesh_s_h
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Jun 6, 2008
10:41 am

correlation calculated will be zero. However correlation is a liner measure of association(and not causality).So it is ok..x& y are perfectly non-linerly...
KAUSHIK BHATTACHARJEE
kabonline07
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Jun 6, 2008
3:57 pm

thanks for your attention in problem but this problem was asked in NET Examination and the options given are (i) 0 (ii) 1 (iii) -1 (iv) 0.5 so kindly...
deepesh bhati
dipesh089
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Jun 6, 2008
5:40 pm

Let be uncorrelated observations with a common variance such that where ’s are unknown parameters and E(.) stands for expectations. The best linear...
deepesh bhati
dipesh089
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Jun 6, 2008
5:44 pm

Of possible answers given, yes, 0 is correct. Question should _really_ be, why? and how did you get that? Without going into the math & equations deeply,...
Jay Warner
jay_y_warner
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Jun 6, 2008
11:04 pm

hi all, i am new member of this community. i have a problem and want its solution as soon as possible. we have two companies share closing prices of each day....
Neha Mehra
nehamehra13
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Nov 18, 2008
4:35 am

hai neha, you can use regression models.    in regression if hieght increses weight also increases, if hieght decreases weight decreses   so, it is Y on...
Tirumala B
b.tirumala
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Nov 18, 2008
4:48 am

hi, no.. but the thing is we want to calculate number of days it takes to go from increased ratio 2(say) to MEAN ratio 1.5(say). regression model will only...
Neha Mehra
nehamehra13
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Nov 18, 2008
5:25 am

Hi, I guess Time Series Model will be a solution....but depends on the available backdata....model needs a good amount of paramiter understanding & may be...
subhabrata bhattacharya
bhutta_subha
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Nov 18, 2008
6:43 am

yea, its time series data. we have daily closing prices of 2 companies and their ratios as data. even model is been fit. but now how to go for finding number...
Neha Mehra
nehamehra13
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Nov 18, 2008
7:00 am

Hi Neha, I dont think its a Time series problem, because in time series we use "time" to forecast a particular parameter and not vice versa. Here I will say...
vishwesh haldavanekar
vishwesh_s_h
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Nov 18, 2008
7:13 am

Neha, take the difference between ratio of two time point & adjust time point accordingly. then use this variable in the model. Thanks & Regards, Subho.   ...
subhabrata bhattacharya
bhutta_subha
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Nov 18, 2008
11:43 am

hey, thanks for telling that. yea i think this will work for calculating number of days. can you please give somewhat more detail about it. ... From:...
Neha Mehra
nehamehra13
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Nov 18, 2008
12:18 pm

assume day-1 Ratio 1.5                 d-2  R  1.7                  d3  R  1.5                   d4 R  ...
subhabrata bhattacharya
bhutta_subha
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Nov 18, 2008
12:44 pm

"if height increases weight also increases" IF and ONLY IF this is how height and weight are connected - linked. First we ask a question: does weight depend...
Jay Warner at AT_T
jaywarner2008
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Nov 18, 2008
7:37 am

Hi Jay, I appeciate your suggestions but, I think you are forgetting the fact that its a complex thing to find out relation between two companies prices...
vishwesh haldavanekar
vishwesh_s_h
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Nov 18, 2008
8:16 am

Hi Jay, I appeciate your suggestions but, I think you are forgetting the fact that its a complex thing to find out relation between two companies prices...
vishwesh haldavanekar
vishwesh_s_h
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Nov 18, 2008
8:16 am

I do not understand the problem, although I tried a lot. Is it something like "We observe a two dimensional sequence (Xn,Yn)_n>=0 and we want to find its...
Zbaganu Gheorghita
gheorghitazb...
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Nov 18, 2008
8:35 am

hi, dependence between 2 companies is there. say mean ratio is 1.5. so on an average airtel stock increase by 1.5 from hcl ratio. and everyday ratio keep on...
Neha Mehra
nehamehra13
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Nov 18, 2008
8:38 am

Hi folks, As a Statistician I think we should not solve each and every forecasting problem using Quantitative methods. Like this one where its not really...
vishwesh haldavanekar
vishwesh_s_h
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Nov 18, 2008
9:25 am

Dear Neha i think ur problem can be answered by Black–Scholes model .The fundamental insight of Black-Scholes is that the option is implicitly priced if the...
krishan pandey
krishankpandey
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Nov 18, 2008
10:05 am

I think the idea of a stochastic process is getting close. If you make typical textbook assumptions, then the two price series are related to two correlated...
Patrick Burns
burnsstat
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Nov 18, 2008
8:04 pm

1) Yes, I certainly agree that finding the relationship between the stock price of two companies is most difficult. And yes, I agree completely that finding...
Jay Warner at AT_T
jaywarner2008
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Nov 18, 2008
7:21 pm
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