# Regression analysis for mutual fund data

Linear regression analysis; construct confidence intervals for regression parameters; correlation coefficient .

We can use two products at my work, which are mutual funds and see if there is a correlation between the two. The two different funds are: a domestic stock mutual fund, which only invests in large organizations (large cap companies) based here in the US and an international mutual fund, which only invests in large foreign-based companies. We can see the relationships between them and the magnitude of those relationships.

Date: USIFX Monthly 2006 USSPX Monthly 2006

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Dec 1 27 21.24

Nov 1 28.91 21.05

Oct 2 28.1 20.66

Sept 1 27.54 20.01

Aug 1 27.49 19.59

Jul 3 26.57 19.14

Jun 1 26.01 19.03

May 1 25.84 19.09

Apr 3 26.79 19.65

Mar 1 25.63 19.40

Feb 1 24.90 19.24

Jan 3 24.95 19.19

https://brainmass.com/statistics/regression-analysis/regression-analysis-for-mutual-fund-data-112738

#### Solution Preview

Please see the attachments. Calculations are done in Excel.

The relationship between the two mutual funds can be illustrated in a scatter diagram

The scatter diagram suggests that there is a positive correlation between the two variables. The degree of relationship is measured by the correlation coefficient

Correlation = 0.753011296

Regression Analysis

The regression ...

#### Solution Summary

The solution contains calculation of regression equation, coefficient of determination, confidence interval for regression coefficients and regression coefficients. Interpretation of the results are also given.