Category: data

How to calculate Jensen’s alpha in Excel
The purpose of this tutorial is to teach you to calculate Jensen’s alpha in Excel. We’ll estimate the Jensen’s alpha on Amazon (AMZN) shares using the S&P500 as the market benchmark and the 13week Tbill as the proxy of riskfree asset. Our analysis will be based on five years of monthly data (i.e., 60 observations…

How to calculate portfolio risk and return in Excel
In this tutorial, we’ll teach you how to calculate portfolio risk and return in Excel. We’ll focus on an example where we construct a portfolio of the following three stocks: Tesla (TSLA), Amazon (AMZN), and Netflix (NFLX). If you’re unfamiliar with the formulas for portfolio return and portfolio risk, we’d recommend you check the following…

How to calculate beta in Excel
In this tutorial, we’ll show you how to calculate beta in Excel. First, we explain the data you need before getting started. Then, we offer four different ways of computing betas in Excel (the first one is the fastest if you’re in a rush!). If you prefer a video tutorial, that is provided at the…

Calculating the correlation between two stocks
In this tutorial, we explain how to calculate the correlation between two stocks and how to construct a correlation matrix using Excel. Jump to: Using Excel to calculate correlations between pairs of stocks Here is a simple, stepbystep guide to obtaining the correlation coefficient between the returns of two stocks. That is it! This should…

Descriptive statistics for stock returns
Descriptive statistics offer a simple way of understanding distributions of stock returns. They give us an idea about a distribution’s centrality, dispersion, and other features. In this tutorial, we will show you how to generate descriptive statistics for stock returns using Excel’s data analysis tool. Using Excel to get descriptive statistics for stock returns What…

Creating a histogram of stock returns with Excel
An easy way to visualize the distribution of stock returns is to plot a histogram. In this tutorial, we will teach you how to create a histogram using Excel. Moreover, we will explain how to interpret a histogram of stock returns. Jump to: Using Excel’s “data analysis” tool to plot a histogram We will be…

Stock prices and returns – How to plot time series?
The purpose of this tutorial is to show you how to plot time series of stock prices and returns using Excel. And, we will also explain how to interpret these plots to gain a better understanding of stock prices and returns. We will use Microsoft Corporation (MSFT) shares and Kellogg Company (K) shares as examples.…

Stock price data – How to download?
In this tutorial, we will explain how to download stock price data from Yahoo! Finance. Yahoo! Finance is a great source for obtaining historical data on financial securities such as stocks, stock market indices (e.g., S&P 500, Dow Jones Industrial Average, FTSE 100), and ETFs. It has global coverage, and the data is free to download.…