{"id":10184,"date":"2020-05-29T17:21:42","date_gmt":"2020-05-29T09:21:42","guid":{"rendered":"https:\/\/www.finereport.com\/en\/?p=10184"},"modified":"2020-06-02T10:57:40","modified_gmt":"2020-06-02T02:57:40","slug":"what-data-do-you-need-to-analyze-an-investment","status":"publish","type":"post","link":"https:\/\/frg.fineres.com\/en\/2020\/05\/29\/what-data-do-you-need-to-analyze-an-investment\/","title":{"rendered":"What Data Do You Need to Analyze an Investment?"},"content":{"rendered":"

While in-depth data analysis is often applied to business or personal finances, it\u2019s also increasingly being used by average investors to track assets. This is not to suggest it\u2019s some new phenomenon; professional investors and larger funds and investment firms have long taken advantage of powerful, advanced analytical tools. However, with more people who have gained access to data analytics tools<\/a> and learned how to use them, taking a data analytics approach to investment is now possible for everyone.<\/p>\n

\"\"<\/a><\/p>\n

That doesn\u2019t mean you\u2019ll be handling the same amount of data, or doing the same depth of analysis, as a high-end investment firm. However, using accessible analytics tools, the right data can give you some fairly valuable insights into personal investments.<\/p>\n

Here are a few of the things you might consider plugging into your analysis.<\/p>\n

Market Charts<\/strong><\/p>\n

Before you get into assessing a particular stock or asset you might be interested in trading, it can be helpful to develop a feel for the market around it. The movement of a stock exchange does not, of course, determine that of any individual stock\u2019s \u2014 but it can still provide valuable insight within a broader analysis.<\/p>\n

Asian-Pacific market charts are easily accessible<\/a> online, and can be examined in detail such that you can pull and plug in whatever data points you wish to include. At the very least though, it would be wise to take note of daily highs, lows, and movement for any market in which you\u2019re trading assets. So, for example, if you\u2019re looking to trade Panasonic Corp., you\u2019ll want to keep tabs on the Nikkei 225, where it trades; if you\u2019re investing in AIA Group Limited, track the HSI, and so on.<\/p>\n

Asset Price<\/strong><\/p>\n

The most straightforward data you\u2019ll want to plug into whatever analytical tool you\u2019re using is the pricing of any asset you\u2019re actually trading. As with the markets, our suggestion would be to include, at minimum, notes on the asset\u2019s high, low, and movement for any given day. These data points are easy enough to reference on their own whenever you need them, but plotting them over time can help you to begin constructing meaningful analysis that can lead to more strategic trading.<\/p>\n

Similar Assets\u2019 Prices<\/strong><\/p>\n

Tracking assets similar to those you\u2019re investing in, or which are at least classified similarly, can also help you to put together more robust data. This is perhaps most clearly illustrated in the commodities market. Most are familiar with the idea of trading gold, or oil \u2014 but when you look at commodities that are popularly traded<\/a>, you\u2019ll also see assets like sliver, coffee, and various other metal and agricultural products.<\/p>\n

None of these necessarily relate to one another directly. But sometimes, a more comprehensive understanding of the commodities market can still be helpful. (For instance, you might see where commodity traders are moving their money if one resource crashes.) So, in this example, you might regularly input data relating to movements in oil, coffee, and soybeans, even if you\u2019re only actually invested in gold. The same idea applies to stocks and other assets as well. Tracking your investment\u2019s closest counterparts can never hurt.<\/p>\n

Asset P\/E Ratio<\/strong><\/p>\n

Price to earnings ratio, or P\/E ratio, is one of the most important analytical data points that experienced investors use \u2014 even if it might be entirely foreign to a market newcomer. To illustrate its importance, consider this: Last year, the Hong Kong market was said to be facing a drought of initial public offerings<\/a> on the grounds that its average P\/E ratio was at its lowest in years. In other words, companies were hesitant to even be listed in Hong Kong simply because of poor indications in existing listings\u2019 P\/E ratios.<\/p>\n

As to what exactly a P\/E ratio is, it is essentially a formula: a company\u2019s listed price divided by its EPS, or earnings per share. The listed price is simply how much a stock is worth publicly at any given point; the EPS is something reported by the company, which can be found through most established trading platforms. Ultimately, the P\/E ratio is used to determine what some consider a more accurate valuation of a stock. Tracking it over time can add valuable information to your data analysis.<\/p>\n

Asset Trends<\/strong><\/p>\n

This is a very simple type of data point to add, but nevertheless one that\u2019s worth your while. Basically, we\u2019re suggesting that you plug in information relating to an asset\u2019s past performance (perhaps in weekly, monthly, or quarterly intervals). The past activity does not dictate future performance, but it can\u2019t hurt to identify trends in pricing, counterpart pricing, P\/E ratio, or anything similar.<\/p>\n

This is not a comprehensive list. Experienced investors will go further with technical details and additional means of measuring asset value. If you\u2019re just starting up though, these categories can represent the beginning of thorough data operation.<\/p>\n","protected":false},"excerpt":{"rendered":"

Using accessible analytics tools, the right data can give you some fairly valuable insights into personal investments. Here are a few of the things you might consider plugging into your analysis.<\/p>\n","protected":false},"author":1,"featured_media":10185,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[161],"tags":[],"_links":{"self":[{"href":"https:\/\/frg.fineres.com\/en\/wp-json\/wp\/v2\/posts\/10184"}],"collection":[{"href":"https:\/\/frg.fineres.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/frg.fineres.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/frg.fineres.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/frg.fineres.com\/en\/wp-json\/wp\/v2\/comments?post=10184"}],"version-history":[{"count":6,"href":"https:\/\/frg.fineres.com\/en\/wp-json\/wp\/v2\/posts\/10184\/revisions"}],"predecessor-version":[{"id":10195,"href":"https:\/\/frg.fineres.com\/en\/wp-json\/wp\/v2\/posts\/10184\/revisions\/10195"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/frg.fineres.com\/en\/wp-json\/wp\/v2\/media\/10185"}],"wp:attachment":[{"href":"https:\/\/frg.fineres.com\/en\/wp-json\/wp\/v2\/media?parent=10184"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/frg.fineres.com\/en\/wp-json\/wp\/v2\/categories?post=10184"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/frg.fineres.com\/en\/wp-json\/wp\/v2\/tags?post=10184"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}