Slope

Optuma General Discussion
1

Hi,

I have three very special questions.

    • I want create a theoretical trend line with a 5% trend/slope.

The regression function is; Y = m*x + c

Y = price
m = slope
x = time unit
c = trendline crosses the Y-axis when x = 0 therefore c = 0

Now my question: How do I “convert” the 5% trend/slope to “m” in the regression function?

Can I say that 5% equals 0.05 as “m”?

I have attached a simple Excel file to show what I want to do.

    • The tool “Linear Regression Slope” calculates the slope of a regression line.

Lets say the 10 Period Linear Regression Slope has a value of 0.12.

Does that mean, that the slope of the linear regression line of the last ten days is 12%?

    • Lets say the Beta between the S&P 500 and Amazon is 1.49.

Does that mean, that Amazon has a 49% higher volatility than the S&P 500?

Thanks to all.

Trend-Slope-Example.xlsx (15.5 KB)