Longitudinal Data Analysis and Time Series Commons^™

Investigating Use Of Beta Coefficients For Stock Predictions, Jeffrey Swensen

Williams Honors College, Honors Research Projects

By using previous stock market data, investors can get a good sense of how to invest for the future. A common way to determine what stocks are riskier than others is by using the beta coefficient. This paper investigates the relationship between the overall S&P 500 market and certain individual stocks to see if we can use past stock return data to predict the future riskiness of certain stocks. Correlation between the individual stocks and the S&P 500 will allow us to determine the relationship between the two. Finding the beta coefficients for the individual stock market will allow investors …