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Descriptive Statistics & Normal Distribution Curve for Stock Return
Descriptive statistics analysis is a simple statistical analysis, yet insightful. It is found that the difference volatility between observation periods just looking at the descriptive statistics. As an extra, the analysis is done in R programming language!
The analysis period covers 10 years of TBIG’s return, PT. TOWER BERSAMA INFRASTRUCTURE TBK), between 1 January 2011 and 31 December 2020. TBIG is one of the leading independent telecommunication infrastructure providers in Indonesia. Firstly, we will analyze 10 years of data and secondly, we will go detail into first five-year and second five-year.
PART 1: The Analysis
Stylized facts from TBIG’s return within 10 years does not follow theoretical normal distribution. It can be seen that its distribution frequency has skinnier curve than normal distribution. The first five-year and second five-year have same distribution as displayed in Graph 2 and Graph 3.
For descriptive analysis, TBIG’s return in 10 years has mean 0.05% with highest return 20.6% and lowest return -14%. In this point, we can not conclude yet how volatile…
