Financial Time Series

Plot the Results

Plot the results in a single figure window. The top plot in the window has the actual closing stock prices and the dividend-adjusted stock prices (spot prices). The bottom plot shows the actual return of the stock and the predicted stock return through regression.

subplot(2, 1, 1);
plot(t0);
title('Spot and Closing Prices of Stock');
subplot(2, 1, 2);
plot(tret);
title('Actual and Predicted Return of Stock');

Figure 1-8: Closing Prices and Returns

Regress Return Series Against Metric Data

Calculate the Dividend Rate