Buy the dip

The following dashboard is based on a research paper titled Buy the Dip by Tom Shohfi and Majeed Simaan - see link.

COVID-19 and the Fear Gauge

In March 2020, we witnessed all-time high levels of volatility. This was reflected by the VIX index, also known as the fear gauge. The spike in volatility came along the large sell-off in the stock market triggered by concerns about the severe economic impact of the COVID-19 epidemic. The plot below utilizes the global data on the confirmed COVID-19 cases, published by Johns Hopkins University (right hand y-axis). The left hand y-axis denotes the cumulative return on the VIX index and the S&P 500 since Jan 2020. We observe that the VIX and the increase rate in COVID-19 are correlated since the global outbreak epidemic (March 2020).

The code and description can be found here.

Text-Based Network

The plot below demonstrates how to construct a text-based network using public available data. The idea to construct a similarity matrix across different firms using the profile description provided by Yahoo Finance. This creates a pairwise similarity matrix in product/operation description. Using such metric, one can construct an adjacency matrix, which can be used to illustrate network relationships.

The code and description can be found here.