Investigative Research Project Report

Causation versus Correlation
Divergence versus Convergence

PURPOSE:
In groups, the purpose of this exercise is to learn to initially collect/retrieve and collate data electronically. Secondly, via

critical analysis and observation students must statistically and mathematically examine and explore the data files individually and

then collectively between other data sets, stating any hypotheses that may justify their inclusion. A professional report is to be

submitted. Do not include original raw data nor a literature review.

Data:
a. S&P500
b. VIX
c. 5-year U.S. Treasury – retrieve (Yahoo.finance)
d. 10-year U.S. Treasury – retrieve (Yahoo.finance)
e. MOVE

METHODOLOGY TO USE:
1. Definitions
2. Annualizing data – why? define, explain
3. Moving Average – why? define, explain
4. Lagging data – why? explain
5. Graphs – individual/groups – label clearly graph and fonts
6. Descriptive statistics
7. Forecasting

STRUCTURE OF REPORT
1. Coversheet
2. Table of content
3. Executive Summary
4. Introduction
5. Methodology
6. Results
7. Limitations
8. Conclusion
9. Citation & reference list

More instructions:
1. Use graphs, tables…etc in writing this report
2. Compare in graphs S&P and VIX: is the data convergent or divergent? Causation or Correlated?
3. Start off with the S&P and VIX data, following that is the rest of the data
4. Define each data briefly, and determine how is it calculated?
5. Use descriptive statistics, graphs, mention/explain the negative and positive signs.
6. Use natural log (today vs. yesterday) in terms of percentage. Define and explain it. Compare between it and between the regular

percentage change (put 2 graphs as comparisons) along with the explanations ofcourse.
7. Compare the Treasury Bill with the MOVE in terms of using graphs as well.
8. When using VIX, you can only use graphs no need for descriptive statistics.
9. Compare VIX and S&P in terms of percentage change.
10. MOVE and BOND comparisons