AMD and NVDA stock trade plan

The plan (as of March 3, 2017) is as follows:

AMD:

amd_march_3_2017

NVDA:

nvda_march_3_2017

Advertisements

Predict stock performance by using MLR

It is to use multi-linear regression(MLR) to study each individual factor contributing to the stock performance within 3 months’ time.

The code will be written in python language.

For stock data, we downloaded from https://www.zacks.com/screening/stock-screener, as it allows you to export the data to .csv file.

The selection criteria uses in our project is as follows:

Time as of Nov 30/2016

  1. Market Cap >= 100 million
  2. Avg Volume >= 10000
  3. Beta <= 3
  4. P/E(Trailing 12 Months) <= 150
  5. Current Ratio < 10
  6. Current ROE(TTM) >= -100
  7. 12 Mo Trailing EPS >= 0
  8. Price as a % of 52 Wk H-L Range > -100%
  9. % Price Change (12 Weeks) > -100%

There are 2718 stocks being screened out through the criteria. And we split the data into train data and test data with about 80% to 20% ratio.

We train the multi-linear regression model with train data and generate the pred data based on test set.

Meanwhile, we are trying to find out which are the most critical factors that would contribute most to the % Price Change (12 Weeks).

The method that we used to optimize our model is backward eliminination (https://en.wikipedia.org/wiki/Stepwise_regression).

After optimized, the most critical factors are:

  • market cap (x1)
  • average volume within one day (x2)
  • current ratio (x3)
  • Price as a % of 52 Wk H-L Range (x4)

 

summary_table

From the model, we can draw the multi-linear liquation as follows:

% Price Change (12 Weeks) = (-20.6866) + (-3.612e-05)*(market cap) + (2.037e-07)*(average volume within one day) + (-0.2819)*(current ratio) + (0.3669)*(Price as a % of 52 Wk H-L Range)

Definitely, this model will not be the best one and it is just for study and research purpose.

 

You can download the full code as github:

https://github.com/edwardchenzf/MLR_Stock_Predict

Intel stock 10/19/2016

Recently, I am watching on intel stock and considering to long the stock.

But we can’t just base on some article saying that the target price for intel is 48, and then go in to buy intel stock on the spot without our own understanding and analysis.

I have not yet finished the write up on the valuation of intel stock before intel released the quarter financial report.

The following chart is the one that I plot on Oct 16, 2016. A few days ago, I am looking at two levels: one is 36.59 and the other one is 33.84.

intel_stock_oct16_2016

Then, after intel released the quarter financial report, the stock breaks the 36.59 area. I will focus on the 33.82 area. If intel stock does not break price 33 and find the support there, then we will go in and long intel stock.

At the same time, I will finish the analysis report on intel stock.

intel_stock_oct19_2016