This project applies a mean reversion strategy to analyze the performance of NVDA (NVIDIA) stock using Python's pandas and numpy frameworks.
What is Mean Reversion? Mean reversion is a financial theory suggesting that, after an extreme price move, asset prices tend to return to normal or average levels. Prices routinely oscillate around the mean or average price but tend to return to that same average price over time.
Strategy Performance Despite implementing the mean reversion strategy, it was observed that the buy/hold strategy outperforms the mean reversion strategy. This is primarily due to the recent uptrend in NVDA stock, which favors a buy/hold approach.
Buy and sell signal:
#Repository Contents:
- Code
- NVDA Stock Price from 2021 to 2024
Details: https://rahatdhrubo.medium.com/nvda-stock-outperforms-mean-reversion-ed45f4857c51