Questions tagged [normalization]
The normalization tag has no usage guidance.
2 questions
9
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answers
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How to normalize stock data
Please advise how can i normalize stock prices.
Recently, I've been using such formulas:
Log prices = Ln(Close(t))
Close(t)-Mean
(Close(t)-Mean)/(StdDev)
Ln(Close(t))-Mean
Is there any other ways?
- 169
3
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0
answers
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Which kind of normalization to prefer before PCA (generic solution for any factor analysis)
I have financial assets with totally different volatilities, thus I must standardize them before PCA, otherwise, assets with high variance may be considered as principle components, which is wrong.
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