Regression Equations, Generalized Least Squares, Correlation Matrices, Python, Statsmodels.
or NASDAQ, the sector that it lies in, and the corresponding market as proxied by the S&P 500 industry/sector index. A basket of 8 stocks trading on NYSE or NASDAQ along with the corresponding industry/sector index (Image by Author) We’ll construct a CAPM model (which is a linear model) for each of