Skew & Kurtosis

I illustrate how to manually calculate skew and kurtosis with Google's daily price data from 2007. The point is the variance, skew and kurtosis are each related MOMENTS of the distribution. A normal distribution has skew = 0 and kurtosis = 3

https://www.dropbox.com/s/zg2x5ukywjt...

• Category

  Education

[wazzupfrenzy]

the distribution is actually positively skewed

[bionicturtledotcom]

Um, no. It's negative. I added link to the XLS. the skew is NEGATIVE 0.43 (-0.43)

[bionicturtledotcom]

i don't attach any weight to psychos who wish me harm. Bug off.

[bionicturtledotcom]

Thanks but I already inferred that you wanted an extra 30 seconds of (free) video from the statement "I hope something really bad happens to you" (what other conclusion could I draw?). If that's your constructive criticism, what's your destructive criticism? Fiery deathball? In all seriousness, the only thing your comment does is make laugh and contemplate the drawback of youtube: they'll let anybody in, absolutely anybody with a keyboard. But i am sure you are really tough in person :)

[intrikatkat]

thank you for explaining that. It was really helpful... studying via correspondence means useless textbooks that don't make sense without a demonstration

[tooshlong]

YOURE AN UTTER UTTER LEGEND!!

[nychets]

It's my understanding that skewness has more to do with the tails of the distribution. The left tail clearly has many more observations, therefore it's no surprise that the result is negative skew, even though the peak of the distribution doesn't resemble a typical example of negative skew.

[blackyvicky]

Sorry but if you made an educational video please get the facts straight. a skew to the LEFT is a POSITIVE skew, not a negative skew.

[the11diesel]

ditto!

[XiaoweiLI]

hi just wondering how did you get the distribution graph

thanks

[wazzupfrenzy]

why do you continuously compound the day return on the google price? why not use the holding period return?

[tbingham0298]

David, thank you for being so generous with your time and posting your extraordinarily helpful videos!