A hybrid analysis (investing in commodity stocks with fundamental and technical analysis)

• Main Author: Hoon, Ren Jie
• Other Authors: Wong Jia Yiing, Patricia
• Format: Final Year Project
• Language: English
• Published: 2018
• Subjects: DRNTU::Engineering
• Online Access: http://hdl.handle.net/10356/74614
• Institution: Nanyang Technological University

Fundamental analysis and Technical analysis represents two commonly used but completely different techniques used by investors in their assesment of stocks. The project aims to investigate the effect of utilizing both forms of analysis in a combined effort to identify the best commodity stocks within the Singapore Exchange (SGX) to invest in. Extensive investigation into the fundamentals of the companies from a quantitative approach is conducted to attain the best 3 stocks. On top of that, qualitative factors and characteristics of these commodities stocks and the companies are explored. Technical analysis through the software Equis: MetaStock Program will be applied to the selected stocks to determine ideal trade movements. The project ends with a final simulation for time period between 2016-2018. It was found that the uncovering of fundamentals using fundamental analysis and the in depth analysis of trend patterns with the combined usage of technical indicators, shows the feasibility of the proposed combined analysis. In additional, profits returns observed in the simulation for the portfolio of stocks is more than double than most tradaitional strategies trading strategies which are usually exepceted to give a 7% return.