You often hear two things when watching or reading financial news. One is earnings season, and another is quantitative trading. Most people prefer to manage their own money and pick the companies their most familiar with when making trading decisions. I’m going to integrate the two to talk about the performance of a simple earnings trade strategy across the NASDAQ and how it compares against a basket of popular stocks.
I’ve always followed bank stocks ever since I first began investing almost six years ago. Once I learned the 10-year and 2-year treasury spread was a profit driver for the big banks, I started to track the daily fluctuations. These two interest rates are part of the larger yield curve that generally trends higher along the x-axis of a graph, while an “inverted” curve trends lower along the x-axis. Let’s take a look at the yield curve over five different time frames since the start of 2018 and which of these yields recently inverted.
While most of us have used or considered booking an Airbnb, there are a lot less of us who have considered posting our own property on Airbnb. Being that New York City rent is extremely high, I’ve considered listing my Brooklyn apartment to see what kind of profits I could turn. During this time, I was learning about multiple linear regression in my Quantitative Analysis & Forecasting class and was assigned a project to create a linear model to predict some form of dependent variable. I figured why not use this opportunity to dig a little deeper on estimating a listing price for my apartment.