ABSTRACT
This chapter starts with Autoregression model (AR) model to introduce the whole system of time series analysis and then implement the model with R language. It describes a deep interpretation of the applications of the investment theory and the statistical theory in the practical financial market with R language. The chapter explains knowledge about Alpha and Beta. The concepts of Alpha and Beta originated from the financial market to solve the problem of portfolio return decomposition. The chapter analyzes that the internal logic of the production and material supply, coking coal and coke are of upstream and downstream relationship. It introduces the basic application of multiple regression in the financial market, with the statistical analysis techniques of multiple regression. The chapter discusses some complicated rules in life by building models of multiple independent variables and a dependent variable and establishes effective indicators to test the model. It introduces the R interpretation of multiple linear regression model.
