Create graphical summary for a return series

As a first step, the code on the right extracts the "core data" from the all_returns variable and stores it in the matrix return_matrix. "Extracting the core data" in this case means stripping off the index/time attributes and returning only the observations. Secondly, the graphical window is subdivided into two rows and two columns with the par(mfrow = c(2, 2)) command. Finally, the code generates a histogram, boxplot, density and qqplot of the return data. This allows you to visually assess the symmetry of the return distribution, whether or not there are fat tails, outliers, etc.

Instructions

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