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by youngprogrammer
3238 days ago
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Outliers were removed to get a better measure of the "accuracy" of the price targets. 10 day windows were used to reduce the amount of volatility/noise in a time frame Return horizons for 1 years was used because price targets are for one year. Theres only 15 or so analysts I looked at. I was doing this as an exploratory data analysis and didn't want to pull out my old stats textbook. Cutoffs were chosen to reduce volatility of measurements since I was looking at percentages. A stock going from $1.5 to $2.0 is a 33% increase whereas the movement of $100 to $133 is significantly more impactful. Stock with lower market cap have more volatility. The minimum analyst rating was chosen to eliminate analysts with very small number of ratings as they would be unreliable. |
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