Question

n this CT assignment, we will use R software to analyze a dataset GoogleAmazonStock.xlsx.

It contains daily closing stock prices for Google and Amazon from 8/22/2017 to 8/22/2018. When we examine stock prices (or other financial assets) we often transform them into a (simple) return series. The return series are computed by the formula: (present price/past price) - 1. The dataset contains both stock prices and return series.

1. Using R, construct time series (line) plots for both stock prices and return series. R functions ts.plot or plot can create the plot.

How do you create a plot in R from an XLS file that overlays Google.Return and Amazon.Return by Date?

I would like to use Time Series, but this xls file is not recognized as a time series file

Example Data Set:

Date	Google.Close	Amazon.Close	Google.Return	Amazon.Return
8/22/2017	924.690002	966.900024
8/23/2017	927	958	0.002498132	-0.0092047
8/24/2017	921.280029	952.450012	-0.006170411	-0.0057933
8/25/2017	915.890015	945.26001	-0.005850571	-0.007549

Answer 1

R CODE:

d<- read.csv("C:/Users/Ayushi/Desktop/ts.csv")
plot.ts(d$Google.Return)
windows()
plot.ts(d$Amazon.Return)

R OUTPUT:

Comment:

Enter the data in excel sheet and convert it to csv format. Then in R code, you enter the path of the excel file. Here I have entered mine.

Hopefully this will help you. In case of any query, do comment. If you are satisfied with the answer, give it a like. Thanks.