Index Plot
- Visualizes how values in a dataset change across a specified time period.
- x-axis represents the time period; y-axis represents the dataset values.
- Commonly used in finance and economics to track assets such as stocks or financial indices.
Definition
Section titled “Definition”An index plot is a graph used to display the trends and changes in a dataset over a certain period of time. The x-axis of an index plot typically represents the time period being plotted, while the y-axis represents the values of the dataset.
Explanation
Section titled “Explanation”Index plots are commonly used in finance and economics to visualize the performance of a stock or other financial instrument over time. By plotting values against time, an index plot makes it easier to observe trends and patterns that may not be obvious from raw data alone. This visual summary can support analysis and decision making related to the dataset being examined.
Examples
Section titled “Examples”Stock performance (ABC Corporation)
Section titled “Stock performance (ABC Corporation)”An index plot of a stock’s closing price over a specific time period, such as the past year, places each day of the time period on the x-axis and the stock’s closing price on the y-axis. This lets you see how the stock’s price has changed over time and potentially identify trends or patterns.
Financial index (S&P 500)
Section titled “Financial index (S&P 500)”An index plot of a financial index (for example, the S&P 500) uses the time period on the x-axis and the index value on the y-axis. This shows how the overall market or index has performed over time and can reveal trends or patterns in the market.
Use cases
Section titled “Use cases”- Visualizing and analyzing changes in financial datasets over time (commonly in finance and economics).
- Tracking the performance of individual stocks or broader financial indices to identify trends.
Related terms
Section titled “Related terms”- Stock
- Financial index
- S&P 500
- Closing price
- Time period