From the course: Algorithmic Trading and Finance Models with Python, R, and Stata Essential Training
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Regressions in Stata
From the course: Algorithmic Trading and Finance Models with Python, R, and Stata Essential Training
Regressions in Stata
- [Instructor] One other thing you may want to be able to do in Stata is to run regressions. Stata is a great tool for running regressions, and regressions are very useful for helping you to understand relationships between different variables, which is a key component, in a predictive analytic sense, in terms of developing effective algorithmic trading strategies. I've imported the data from the 04_06_Begin Excel file and put that into Stata, as you see here. So we've got data on years, tickers for various companies, and then a variety of accounting variables, total assets, cash, EBITDA, liabilities, et cetera. One nice feature about Stata is that if you compare Stata and their variables versus Excel, Stata goes through and takes out all of the spaces in your variable names but then leaves them in the label. So you can easily read what's going on, but at the same time, you don't have to worry about, "Do I put in a space, do I not put in a space?" When I'm typing a command, et cetera.…
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