An Empirical Risk and Return Analysis of Select Stocks in NASDAQ 100

Stock market indices are considered to be a powerful economic indicator. These can classified based on the methodology of weight allocation for each stock and rules governing entry, retention exit criteria various stocks in index. This paper presents descriptive an exploratory analysis carried out daily returns data NASDAQ 100 (^NDX) index shortlist 20 Random sampling was conducted at sector level strata all that make up approach followed avoid selection bias from varied sectors represented equally this analysis. R-squared values correlation coefficients were used determine explain-ability relationship between respectively. The applied univariate individual aggregated level. Inter-relationship by computing Pearson’s coefficient across different combinations return values. Linear regression identify explain ability variance stocks. All using python stats-models library. As anticipated, randomly picked able ~85 % One primary focus explore whether NASDAQ-100 variability technology relatively more than belong other its portfolio owing nature most