Wednesday, January 23, 2013

IQR and Percentile of Stock Returns by Month

Below, Corrections plots three percentiles of monthly stock returns (NASDAQ, AMEX, and NYSE) over time.  A 1 corresponds to a 100% gain.  A 0 corresponds to no gain, and a -1 corresponds to a 100% loss (click to enlarge).  
Similarly, we plot the interquartile range (75th percentile minus the 25th percentile) of stock returns in each month (click to enlarge)

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