![]() ![]() Mark contributions as unhelpful if you find them irrelevant or not valuable to the article. Tukey, developed and introduced box plot about the year 1969. Summarily, there is the exploratory data analysis, there is the predictive data analysis, using box plot to gain insights from data however could be said to fall within the sphere of descriptive data analysis which is to show or summarize data in a meaningful way but not really giving an overall conclusions regarding same.Īn American mathematician, John C. (I tried to also carry out data transformation on the mentioned stocks closing prices, to cater for cases of an overly skewness, but even with that, there is hardly much noticeable differences in the observation)ĭisclaimer: This is far from a financial advice on whether a particular stock is a better one or not but rather a sort of analysis on gaining an insight into performance and consistency of stocks data over a specified length of time, using a type of chart called Box plot. That being said, it goes without saying that as volatile as stock market is, subjecting this same stocks data at some other point in time into analysis is most likely going to have a different charts to it, depending on as many market and stocks performance-determining factors as possible. Of the four, Champion Breweries' is more consistent and higher in its closing prices, while NEM Insurance's is the least.Both Axa Mansard Insurance PLC and Honeywell Flour Mills stocks almost have their upper whiskers at same height, almost, but as a reason that Axa Mansard's box is a bit higher, it is then safe to say that it is a bit more consistent/performed better compared to Honeywell's in term of closing prices.Honeywell Flour Mills PLC stock has some outliers what this suggests is that during the period being considered, same stock 'over-perform' and as well 'under-perform' in relation to where the bulk of the rest data values are.Going by how to interpret box plots in comparison, using the terms already explained, it is worthy of being noted of the following: The selected companies stocks are those of Champion Breweries PLC, Axa Mansard Insurance PLC, Honeywell Flour Mills, NEM Insurance PLC. Recall that the 50% of the whole data is enclosed inside the box, thus it is justifiable so say that higher box is the better box. The reason being that while a longer upper tail could suggest a long range of data, the height of the box reveals where the greater data is, on the average, of which the higher it is relative to the upper tail, the better. The Source of Data Used: Credit goes to an highly respected person by the name Micheal Olafusi, a Microsoft Excel MVP, who designed an Excel app called Nigeria Market Data: an Excel add-in which can pull data related to Nigeria Stock Exchange, NSE, and other Nigeria data, straight into Microsoft Excel, for an immediate analysis.Īs a general rule of thumb, to recognize the box plot with better performing or higher values of data, the height of the box is given consideration while comparing one box plot with another instead of their upper tails. Meaning any data value which is outside or greater than 1.5 multiplied by the difference between Upper Quartile and Lower Quartile, such is classified as an outlier, either above or below the whiskers/tails. OUTLIERS: These are data observation that are outside the box plot as a result of having far higher or lower values based on this formula: 1.5*IQR. The difference between them is known as the InterQuartile Range, IQR. LOWER and UPPER QUARTILES (Q1 & Q2): lower and upper quartiles are also known as 1st and 3rd quartiles they represent where the box begins(bottom) and where it ends(top) respectively. Asymmetry denotes if the box either tends to the upper or lower whisker. (In the case where the box is nearer to the upper tail, it is said to be positively skewed, and negatively skewed if closer to the lower tail) SKEWNESS: Skewness refers to how asymmetric the box plot is. The upper whisker means the highest value, while the lower whisker refers to the lowest data value.not considering if outliers are present. WHISKERS: These refer to the upper and lower tails.
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